Iris Blackhall, a social housing resident in Dubbo told ABC News that, "I have never received a letter informing me on how to behave."
"It's only when we're having this Aboriginal Football Knockout that we're told we have to take care and behave ourselves. It was very racially discriminating. I'm 60 years old and I don't go out of my way to make problems for anybody," Blackhall said.
FACS has since admitted that the letter was poorly worded and said the letter was a way of offering support to residents.
The Koori Knockout is expected to bring in more than $6 million to the local economy.