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"As Ross said the casino has to put money aside to cover these chips."
Not true.
A casino's bankroll (cash in the cage and or in a bank account) is determind by a complicated formula.
Amounts of chips (chips are an IOU), number of slots by denomination, progressive slot jackpots, Sports Book betting limits, keno limits, number of table games and limits on them, etc, etc.
They arrive at a total liability, and bankroll is a % of that total.
I have never asked the percentage, but I know it can vary depending on the solvency of the company. This is re-evaluated every 3 years and can be re-evaluated daily, weekly, etc when a company gets into cash flow problems.
"So really they don't see a profit until the chips are given a redemption notice and cleared from the books"
Not true.
Profit can be brought into accountability when there is a reasonable assumption they they will not be brought back. You can do that at the end of each year.
"The chip costs them under $1 so they're making a $4 profit every time a collector keeps a $5 LE chip."
Not True.
Please email me the gaming approved distributor that will sell me chips for under $1, especially Limited Editions.
"Does anyone (Gene) know what a typical chip order is when a casino replaces all of its chips?"
Number of chips needed to open a casino or replace a rack is determined by a formula.
How many and what type of table games. How many poker. How many times a day you drop the drop boxes, etc, etc.
From memory as I did not dig out the sheet, we opened the Palms with about 120,000 chips. no back up rack.
"If a casino goes out of business and a new one opens up do the old chips immediately lose their value or will the previous owners still be required to cover them somehow?"
A casino going out of business has to issue a 120 day redemption notice in the newspapers and state where they can be redeemed. It can be at the casino with new owners or can be at another casino.
OR
When we sold the Fiesta, Stations assumed the responsibilty for our chips and used them for quite some time. This can be done when the casino is not changing names.
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