I read the notes in the Secretaries' Day chip thread with great interest, and I have some questions of my own. It's a relatively rare opportunity that we have someone from a casino in charge of a chip issuing program who's actually willing to talk with us about their policies. At the outset, let me make clear that I am not posting to "bash" anyone or to criticize what anyone collects. Like some others, though, I'm puzzled by some chip issuing policies and hope Mark Karoll will be willing to give us some more insight.

I do understand Mark's point that - to a degree - scarcity = demand. And I certainly understand that if too many of a commemorative chip are made, some will sell but some will "languish in the cage" for some time. I also happen to agree with Allan and Janice that most collectors are trying to collect chips, not bragging rights to owning what no one else does.

But there's something more fundamental about this issue that confuses me. I'll try to articulate it in the old logic problem way:
Premise:
1. Casinos are in business to make money for their owners/shareholders.
2. The more money they make for their owners, the more successful they are.
3. Casinos by regulation cannot sell chips in the aftermarket, only at face value.
4. The value of a chip in the aftermarket does not affect the amount of money which the casino received for it.
5. If a casino issues too many of a particular commemorative, some won't sell.
(If any of these assumptions is wrong, please say so!)
6. If a casino makes and sells 50 $5 chips, they gross $250, of which a significant portion is profit (more than the chips cost).
7. If a casino makes and sells 100 $5 chips, they gross $500, of which a significant portion is profit for the owners.
7. If a casino makes and sells 1,000 $5 chips, they gross $5,000, of which a significant portion is profit for the owners.
8. If a casino makes and sells 1,500 $5 chips, they gross $7,500, of which a significant portion is profit for the owners.
9. If a casino makes 1,500 chips and sells 1,000 chips, they gross $5,000, although the cost of manufacturing the extra 500 chips (assuming they never sell) must be deducted from the profit made on the chips that did sell.

Can Mark or anyone else explain to me why it is in the casino owners' best interests to make $250 when they could be making $500 or $5,000 or even $7,500?

Finally, I think no one would argue that none of the chips we're talking about here are needed for or intended for gambling purposes, right? There are already plenty of $5 checks on hand to run all the games the casino (not singling out any casino) can possibly fill with customers.

It seems to me that what casinos that follow these kinds of chip issuing policies are doing is trying to create collectibles, not gaming chips. They might as well be Bradford Exchange or the Philadelphia Mint or Beanie Babies. It's for this reason, and the restrictive issue numbers that serve only to make a profit for those who can buy them at face value, that I will not collect "limited edition" or "commemorative" chips for the most part. Even those I have collected (the Aladdin, Orleans and Tropicana Club convention chips, for example), have been in actual play on a table game. I've made sure of it.

Michael