To Anyone Who Is Interested,
Whenever a casino issues checks (chips) it must carry the issue for cage purposes as an asset. The asset is generally called "chips on hand".
The cage in 99.9% of cases is on the impress system. This means it will always have the same balance at the start of the shift and the end of a shift. The only change will be in the nature of the assets. For example, if I walk up to the cage and purchase a $1.00 check (chip). The asset account "chips on hand" goes down $1.00; however the asset account "cash" goes up $1.00. Hence, no change in accountability. The cage will not have a gain or loss. As I stated earlier the cage in 99.9% of the casinos will NEVER have a gain or loss.
The liability for outstanding chips comes about at year end. The accountants look at the "chips on hand" total issued. If $10,000 is missing they will establish a liability on the financial statements for "outstanding chips" of $10,000.
When the casino gets audited by the IRS is when the issue of income develops. The Government will say "none of the $10,000 in outstanding chips will ever be brought back to the casino". Therefore the entire amount must be brought back into income for federal tax purposes. The casino will argue that most if not all of the high denoms will come back and so the issue goes.

In my opinion, the check (chip) exchange at a table or at the cage CAN NEVER be considered a sale. The casino never relinquishes title to the check (chip). It exchanges one asset for another to facilitate the act of gaming. It merely establishes a bailment with whoever the check holder is as long as the holder has the chip in his/her possession. Of course, the bailment can go on forever and also change hands - hence the issue with the Feds involving "outstanding chip liability".

Hope this clears the topic.

Best, Mr."P"