Apparently the was a casino at one time in Baghdad - the Palm Beach Hotel & Restaurant:

There is also a $1 in the set (both sides shown):

And a plaque (both sides shown):

The bottom set of chips were a special set issued by the Holland Casino. I have a set in the presentation display and box.

The chips represent five different operas: La Fanciulla del West, La Traviata, Porgy and Bess, Pique Dame & The Gambler.