"I realize that the casino has to put money aside to cover these chips, but eventually shouldn't they make a profit?"

Yes, now let me see if I can explain this right until Gene comes along. As Ross said the casino has to put money aside to cover these chips. So really they don't see a profit until the chips are given a redemption notice and cleared from the books. Now in NJ I'm not sure how that works as chips are always redeemable. Even after the casino is long closed.

Barry