The yellow Coin Castle chip you show falls into the "trinket" category of casino memorabilia, as most collectors would define it.

"Trinkets and Promotional Items" is a term first coined by Janice O'Neil (I think) to include freebie handouts and gift shop items, such as the Coin Castle item you have. The category can also include wooden nickels, flattened or encased pennies, some gift shop chips (like certain Stratosphere chips, etc.), key fobs (sometimes), etc.

There's a catalog of such items, but it's pretty out of date now. Also, Doug Saito's Chip Chat auctions almost always includes a sampling of trinkets.

I just noticed that the Chip Guide shows your chip under an "Odds & Ends Chips" category.

I don't know if it was issued during the time that the Coin Castle had a couple of live games, or after they switched to slots only. However, my guess is that it was handed out on the street as a free play to induce a customer to come in and play. It was probably played and dropped, if used on the tables at all. Think of it as a pre-Win Card type chip / trinket.