The rim around the token undulates and resembles a wave mold as opposed to a circular rim. Was wondering how it was used the machine mechanisms?
Does anyone have additional information...believe these tokens were used when Vegas was in the process of attracting families to the casinos by offering a "family-friendly" atmosphere. Arcade tokens and gaming centers were the rage with PacMan, etc making the rounds. Electronic gaming in a casino....the family attitude didn't catch on and everyone -- except Circus Circus moved to the next level.
Coin is the size of a quarter.

The shopping-mall arcade chain that became Aladdin’s Castle began as American Amusements, Incorporated, in the early 1970s. It was purchased and renamed Aladdin’s Castle by Bally Manufacturing Corporation in 1974. Over the next several years, the number of store locations grew from 20 in 1974, to 221 in 1980, to 360 when the chain was spun off in 1989.

Namco Limited purchased Aladdin's Castle, Inc, in 1993, merging it with Namco Operations to create Namco Cybertainment (NCI), becoming the largest arcade operator in the world.
Aladdin's Castle Today

The Aladdin's Castle brand exists today as part of Namco Cybertainment's intellectual property, but most of the locations have closed.
Other information

Aladdin's Castle, Inc incorporated several different tokens, a sultan and palace, "Aladdin's Castle" engraved, and lamp motif. Most of these tokens vary in value, depending on the collector.