I don't follow the thought on Gaming losing on tax revenue when a current casino takes in an obsolete chip, pays out cash, and declares a loss for tax purposes. This IS a loss to the casino. You can call it fraud, or "shrinkage", or something else, but the casino will not be taxed on money it didn't win. The loss is to the shareholders of the casino, not to State of Nevada in this case.

By the way, I don't think there's any problem at all today in cashing foreign chips at a Nevada casino. They may occasionally ask to exchange your foreign chip for one of theirs. But of course, you can just take theirs to the next window and cash it. I know for a fact that all the MGM-Mirage casinos will cash each others chips. If you read the Nevada Gaming website on chip redemption, they go into great detail to describe the allowed exchange of chips between casinos, whether by their employees, or a chip-exchange service. I haven't tried to cash foreign chips over $100 denomination, and would expect there would be some checking first. But the Gaming regs don't prohibit the practice.

"Foreign" of course means chips of another operating Nevada casino.