These tokens were painted red as well. Since they had no precious metal content, it surely wasn't to keep melters from running off with them. I don't have the story of how they were used at the casino. Anybody else? I'm pretty sure they were not used in slot machines. Probably a promotion of some sort... maybe free drinks?

On the question of use of colored tokens for special slot prizes, there were higher denomination tokens used in Northern Nevada as well as Atlantic city that had that use. The token manufacturer could apply a translucent colored coating to a few of them on request and if they fell out of your machine, you got a special prize. Here's an example of $25 tokens from Fitzgeralds in Reno, a green one and an orange one. No, they're not just discolored from time.