"Since they have apparently been running this game since before I joined the club, where do they get their customers for their 'service'."
Initially, two slabbing companies tooled up to slab casino chips. They advertised that service on their websites and a few people/businesses that had been using them for slabbing coins ventured into chips, as did one regular member. These two companies even had tables at our convention one year, handing out samples and testing the waters in our playground. Their reception was not what they were hoping for, both companies tearing down before the convention was over, one of them was gone at the end of the second day.
It has been quite an effort by a lot of us in the club to keep this practice out of our hobby, and we have been pretty successful, so far. Too many other hobbies didn't put up the resistance that we have, and many of the collectors involved in them sure wish they had.
Bob
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