I'll take a stab at an Ed Hertel style IOTD . . .

So, I'm at the Pasadena City College Swap Meet on Sunday, not having much luck at finding casino-related items when I walk up to a vendor in the parking garage and see - a Hustler $1 (boring), a Commerce $1 (borrr-ing) and a PALM SPRINGS (KEY SHAPE) CLUB, small crown. Hunnh? Vendor sees me pick up the Palm Springs and quotes a ridiculous price if I buy all three. Less than the cost of a Wendy's Charboiled Cheeseburger. It's a deal! All the vendor tells me is, he found the three chips in an otherwise empty jar while cleaning out someone else's clutter. (Apparently he provides garage and house-cleaning services, perhaps for estates and such, and knows enough to save 'n' sell the treasures.)

Figure it's a TR King, so it's gotta be known, even though the name rings no bells. I get home and start searching - nothing. Look online - still nothing in particular. OK, now I'm on a Quest.

Here's what I found and how I arrived at it. There's a well-known PALM SPRINGS CLUB, a gentleman's club (now accepting ladies as well) founded around 1956. Its history was written up in Palm Springs Life, a local magazine, and we thank them for such help.

https://www.palmspringslife.com/psst-gentlemen-only/

But -- no gambling at the Club, just monumental games of dominoes. To my knowledge, no casino chips needed for that pastime.

Reading the key emblem on the chip to actually stand in for the word KEY, I looked elsewhere and found -- at least THREE possible Palm Springs Key Clubs!

First, and earliest, is buried in a historical book about Palm Springs, I found reference to a Key Club, dating back to 1938 or so, when Palm Springs was first incorporated. An apparently elegant apartment building, now demolished, catering to Hollywood actors spending vacations there in the winters.

http://www.palmspringsca.gov/home/showdocument?id=38144

I oughta make you read all through it, but the Spirit Of Gene Trimble is threatening to heave a thunderbolt at me, so I'll suggest going directly to Page 169 for the reference. Hollywood types in luxury P.S. digs just begs for a card game or two, except that: the time period is too early for Small Crown chips!

Second Key Club is the Kiwanis program that honors deserving high school students. That doesn't work, either.

I should mention that the chip has on its rim, painted white and black lines mimicking "inserts." As if the chips were indeed intended to be put in racks, as opposed to, say, acting as mere dinner or parking tokens.

Third, I looked on the Secretary of State's website and, hooray! - there was a Palm Springs Key Club, Inc. which submitted incorporation papers on 2/27/62:

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The California Business Search is updated daily and reflects work processed through Sunday, April 7, 2019. Please refer to document Processing Times for the received dates of filings currently being processed. The data provided is not a complete or certified record of an entity. Not all images are available online.

C0428530 PALM SPRINGS KEY CLUB, INC.

Registration Date: 02/27/1962
Jurisdiction: CALIFORNIA
Entity Type: DOMESTIC STOCK
Status: FTB SUSPENDED
Agent for Service of Process: *
Entity Address: *
Entity Mailing Address: 1988 AVERY DR.
PALM SPRINGS CA 99262

Document Type File Date PDF
SI-COMPLETE 04/24/1972 Image unavailable. Please request paper copy.
REGISTRATION 02/27/1962 Image unavailable. Please request paper copy.
* Indicates the information is not contained in the California Secretary of State's database.
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1962 is still early (or late, as you wish) enough to have Small Crown chips. 1988 Avery Drive comes back as a private house, built in 1961, so it looks like the first owner of the building used the address for the corporation. Could some clever buyer have planned to hold private card games in his new house to help defray its mortgage costs? Or were the Key Club operations somewhere else in town? Whatever was going on, the use of the chips seems to have been a great secret. Not really surprising, then, that this gaming venue has not come to light. (The Gaming Table lists a Palm Springs Club - no key in the name - with no further info about it.)

Does anyone out there know more about the chip or gaming location? Whatever/wherever the Key Club was, it apparently operated without a state gaming license. Offhand shot showing the black "insert line:"

That's what I get for taking a chance on an old puzzling chip at a flea market. Would I do it all over again? Heck, yeah!