I had also read that Virgil Smith had concessions all over Reno. And a chip with initials would be a cheaper alternative to making new chips for each concession. If that is true; the Reno gaming community was small back in the 40's and 50's and most people knew the operators, if you were in it back then you would know that "VS" meant it was a Virgil Smith concession.

To me if they are to be found to be from Virgil Smith - I would say that that is more of an historical find than a chip from Las Vegas. But that's just me.

Just my thoughts