What do casino chips and the Civil War have in common?

This is a 12-chip set from the Flamingo Hilton that I will be posting in three parts in no particular order.

Enjoy!

Chris

Part I.............

 

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Part II...............

 

Part III............

 

So are casinos trying to get into the NCLT act and create instant collectibles? I wouldn't blame them, I would recommend the same if I were CFO for them.

 

It's good business! By law, the casinos cannot charge more than face value for any chip. It doesn't matter if it happens to be a commemorative. Even at that, they are still making a substantial profit just on the sale of them. Back then (1997) it costed about 50c to produce each chip. So, they were spending about $9K and making a profit of about $81K. Typically, a large set like this would be released by the casino a little at a time, say, one or two a month.The casino wants the customers to return to complete the entire series, and hopefully, spend a little more money in the casino.

Chris

 

I agree with you. Good profit just on the chips, (and they can publish later they are discontinueing them so as for them to not be a liability on their BS), so make good profit on that side, as well as encourage more patronage.

I was just unaware they were in this side business. Not much different than Liberia or Tuvalu "producing" coins though.

 

On the other hand there are those customers from way out of town who WON'T be coming back soon that they would like to sell the whole set to that they would take home and the casino would never have to worry about redeeming. With a "commemorative" series I would think they are hoping more for the take it home an never bring it back souvenir crowd.

 

Well, it doesn't work exactly like that. They never become a liability on the balance sheet. If the sale of a commemorative fizzles out, it's not like the Mint would do and have them melted down to use the metal again. Instead, they just dump them on the casino floor. When a dealer has them in the "bank" he/she will make it a point to give them out to customers. Sometimes the customers, never even knowing that they existed, will take them home. So, the casino gets the $5 one way or another.

At any given time, the casino knows how much they have in inventory, both, on the floor and in the vault. If the inventory decreases through "customer acquisition" that amount must be reported as revenues.

Chris

 

Casino chips are a big time collectable - search eBay and you'll probably get as many hits as for coins. Not only are the commems collectable, but so too are their regular issues. Here's one of my favorites.

 

The casinos pretty much stick to their schedule of releases with only a few exceptions because it makes their inventory records easier to handle. Naturally, if a whale wanted them or a long-time customer, they wouldn't make any bones about it. They will also provide the sets for some of the local chip dealers because their internet listings are just an additional form of free advertising for the casinos.

In 2001, I suggested to the Riviera a design for the 25th Anniversary of the BCA Pool Championships. It was a take-off on "2001: A Space Odyssey" with pool balls as planets. I also encouraged them to produce a $25 commemorative chip in addition to the normal $5 commem because of the 25th Anniversary. They were a little skeptical about a $25 chip selling, so they only made 225 of it. They sold out within 3 hours of the release......that is......except for the 15 chips they gave to me......10 - $5 & 5 - $25.

Chris

 

Hmm, I would think the total value of current series of chips unredeemed would have to be listed as a liability. I don't see how they would get around that. Heck, I have to list as a liability stupid employee appreciation coupons we issue at work.

 

That's a cool one, but I don't see a motorist sign.........Area 51..........50 miles

Chris

 

Technically, they aren't "monetized" until there is a reduction in inventory for revenue reporting.

Chris

 

Boy, they really have gotten fancy, huh? I admit I only have a few old time chips from group lots I had gotten over the years. My mother was a big gambler, so I buried her with some. They were places she used to go like the Sands, Golden Nugget, and a couple of weird ones I never understood, they were labelled MGM Desert Inn. I thought MGM was the Grand, but whatever.

 

Do casino tokens have an expiration date?
I don't see any on the ones I have...

As long as the casino is in business, they have to redeem them, correct?
I have some that I'd just as soon redeem than own.

 

Chris can answer better than I, but I thought the casinos were allowed to post in the papers when they were discontinuing a series of chips, give everyone time to turn them in, and then make them no longer valid. I believe most chips today are obsolete as far as the casino who issued them are concerned.

 

So it's probably a 'state law' type thing...
Mine are from Gulf Coast casinos, so Mississippi law might give them such an out, or may not. ???

 

No! There is no expiration date. A chip is "legal tender" at that particular casino as long as it is still in business. Yes, there are obsolete chips, but this is usually relegated to "house chips" to make room for a redesign. Just like a Merc dime or Buff nickel, it is still legal tender.

Chris

 

You'll probably find that most states that have legalized casino gambling have pretty much copied the Nevada laws. The only major differences may be how the lawmakers enable themselves to put some of the revenues into their own pockets.

Chris

 

You sure Chris?

"You see, as soon as the heist happened, the crook knew that time was not on his side because the casino started to "demonetize" those chips or cancel them. This is allowed under gaming regulations and casinos frequently will require all chips of a certain denomination to be redeemed so that new chips can be circulated to replace them. Usually, this demonetization of chips is done to thwart counterfeiters who are able to duplicate a series of chips in use."

From:

http://alanbestbuys.com/id73.html

I had read before that casinos will periodically publish newspaper notices that they wish to recall all chips of a certain type and you only have a certain period to cash them in for face value.