I' am not an expert, but my guess would be Illinois.
Your chip has the same graphic's as Frog City Chip's, who had the same owner.

(from the Chip Guide)
http://chipguide.themogh.org/cg_chip2.php?id=ILCAFC&v=115564035

Frog City Club
5 miles north of Cairo, Route 3
Cairo, Illinois
Type: Illegal
Status: Closed
Open: 1930s, Close: 1950s

In the 1950s, owned by Jake S Rubin, who also owned the "El Patio Club" in Cairo.

Raided in 1956 with four gambling arrests, including Elmer Terrell for operating a craps and a blackjack table, and raided again in January and March 1957, with dice tables, slot machines, and other gaming equipment seized (see "Archive").

Advertisement from 4/19/1946 (The Messenger).