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Why Do Casinos Use Chips?

Chips are the currency of the casino. They are used to buy into games, purchase drinks and food, and tip the dealers and other casino employees. There are several reasons why casinos use chips instead of cash. And it is not a tradition. Do you want to know more? Keep reading!

Written By:   Dan James     Facts Checked By:   Charlie Morin 

Contents on this page


  • 1.

    Players tend to spend more money playing with chips

  • 2.

    Chips can easily be tracked

  • 3.

    Chips give players a more luxurious feeling.

casino chips reasons


The first reason is security. Chips can be easily tracked and monitored, whereas cash can be smuggled in and out of the casino more easily. This helps the casino prevent cheating and theft. Some casinos use RFID technology to track their chips, which makes them even more secure.

RFID is a radio frequency identification system that uses tags to track and identify objects. So, if someone tries to smuggle fake chips to the casino and then cash out, the chips will be identified as fake, and they will be caught. If RFID chips are stolen, they can be deactivated and removed from circulation, so they cannot be used again. This is not possible with cash.


The second reason is convenience. It is much more convenient for the casino to use chips because it saves time. When you want to buy into a game, the dealer does not have to count out your money. They can just give you the chips.

Chips are also more convenient for the players. If you win a hand, you can just take your chips and leave without having to wait for the dealer to count out your winnings. And if you want to buy something from the casino, like a drink or a souvenir, you can just hand over your chips and save yourself the hassle of carrying around cash.

  • It’s more convenient for the casino
  • And it’s also convenient for the players.


Chips give the casino a more luxurious and high-end image than cash does. This is because chips are often made from materials like clay or ceramic, which are more expensive than paper money.

They are also usually a different color for each denomination, which makes them more visually appealing. And they often have the logo of the casino on them, which adds to the image of the casino as a brand.


Players tend to spend more money when they are playing with chips than when they are playing with cash. This is because chips are seen as play money, so players do not feel as guilty about spending them.

Some studies have even shown that people are more likely to take risks when playing with chips than when playing with cash. This is because chips do not have the same psychological value as real money.

For example, if you wanted to place a C$500 bet on a roulette table, it would be much easier to do so if you had one chip than if you had five C$100 bills. This is because the bill would feel like real money, and so you would be less likely to bet on it. Chip is just a piece of plastic, so it does not have the same psychological effect.

Chips also help to create a feeling of excitement and anticipation. This is because players often stack their chips in front of them when they are playing, so they can see how much money they are winning or losing. They seem. to have this magical effect where time, place, or even withdrawal limits don’t matter.

If you have ever watched a poker tournament on television, you will have seen the players with huge stacks of chips in front of them. This creates a sense of drama and excitement, which makes people want to watch and play.

Some people also believe that the sound of chips being stacked or shuffled is more exciting than the sound of cash being counted. This is because it feels like there is more at stake when chips are used.

The History of Casino Chips

The first gambling houses in America were established in the early 1800s in New Orleans. Gambling was illegal in most states at that time, so these establishments were often located on riverboats. The chips used in these early casinos were made of bone, ivory, or clay.

Casinos began using chips made of moulded plastic in the 1950s. These chips were much more durable and less likely to be damaged than the previous versions. Inlays, which are designs that are inserted into the chip, were also introduced at this time.

Today, casino chips are made of a variety of materials, including metal and plastic. They typically have a value printed on them, and many also have designs or logos.


casino chips

In conclusion, there are several reasons why casinos use chips rather than cash. These reasons include security, convenience, image, and psychology. Chips are more difficult to counterfeit than cash, and they are more convenient to use. Chips also give the casino a better image, and they can encourage players to spend more money.

Looking to play online? We recommend our guide to fast payout casinos. If you are in a hurry, we even have instant withdrawal casinos for you, so feel free to check them out.

Author Dan James

Online Casino Expert

Hey! I'm Dan James, and I handle everything from content writing to quality assurance at Casinofastpayout. I've been around the online gambling industry since 2015, and also did seven years as a poker pro before that.