There seem to be as many explanations about the difference as there are explainers. But the best description we've seen goes as follows.
The difference between a casino cheque and a chip is that the "cheque" has a monetary value, while the "chip" doesn't. For example, when you sit down at a blackjack table and give the dealer $100 in cash, he reaches into his rack and hands you 20 red cheques -- a straight exchange of money for little round disks worth the same number of dollars.
An example of chips, meanwhile, is the colored "wheel chip" at roulette. If you take one of these white, brown, gray, yellow, or blue chips to the cashier's cage, you can't cash them. The value of wheel chips is determined at the table when they're bought. A white chip might be worth $1 today and $100 tomorrow.
"Tokens" are another wrinkle on casino currency. Tokens are generally used in slot machines, although some are used at blackjack tables to pay off uneven bets.
In addition to having specific dimensions, the name of the casino, the monetary value, and the manufacturer's name or logo must all be visible on the cheque. The differing denominations must be differentiated in design in such a manner as to be discernible by the eye in the sky. Baccarat cheques must have a different diameter than those for other casino games, and the same holds true for any chips issued by the sports book.
Similar requirements are in place for tokens, although these are to denote denomination, right down to the number of serrations on the edge. Even their metallic composition is mandated by statute. Now that the vast majority of casinos have gone to cashless slot machines, tokens are largely an anachronism, of more value to collectors than players.
Casino cheques, by contrast, are manufactured from a compound that includes sand, chalk, even the kind of clay you put in your cat's litter box. The inserts around the edge are either manually or mechanically inserted, then baked at 300 degrees. A century after clay-based cheques became standard casino equipment, in the 1980s, ceramic chips were introduced. These had the advantage that the name of the casino, the denomination, and the manufacturer's logo could be printed across the entire chip, not just in the inlaid sections.
The newest wrinkle in cheque manufacturing is the embedding of radio-frequency-identification (RFID) tags. Wynn Las Vegas was the first casino to employ RFID chips, in 2005.
Not only does this enable the house to monitor the movement of cheques across the casino floor, it can remotely deactivate the RFID tag, rendering the cheques non-negotiable: Bellagio used the latter technique to foil a chip scam after a helmeted gunman had robbed the casino floor of $1.5 million worth of cheques. (To be extra careful, Bellagio retired the chips in use on the floor and replaced them with a "secondary set" -- a duplicate but distinct backup set that always exists for use in such scenarios.)
RFID chips are less costly than you might expect, averaging around $2.50 apiece to make, compared to around $1.50 to make a non-RFID cheque.
Using RFID cheques, the casino can determine how much you buy in for and where you play it off, and use that information to keep you in the game longer with well-timed drinks and services catered to your activity. If you're playing with high-denomination cheques, it's almost guaranteed that the casino knows what you're up to.
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