Why is there a NumPlayers problem?

I'm confused as to why when I use Code1 and test it in a server it works, but when I use Code2 and test it with a friend it doesn't work

Code1:

while true do
	wait()
if game.Players.NumPlayers >= 1 then
	gameReady = true
	break
else
	timer.Value = "There needs to be 1 or more Player for Towergames to start."
	gameReady = false
	end
end

Code2:

while true do
	wait()
if game.Players.NumPlayers >= 2 then
	gameReady = true
	break
else
	timer.Value = "There needs to be 2 or more Players for Towergames to start."
	gameReady = false
	end
end

Wait() Pauses a script, you know. So basically I'd do this:

while true do
	wait() until game.Players.NumPlayers > 1
	round()
	wait(1)
end

And put a function in the same script like this:

function round()
	-- PUT YOUR CODE HERE
end