Many of the KY clubs used generic chips at one time or another over their 40 year run, including The Lookout House.
As Travis said, Louisana clubs used many of them.

"Still a puzzle to me--seems they opened themselves up to cheating."

It is not hard to tell when someone runs in chips.
Maybe a few, but a lot would be noticed right off. You might get a few down one night but they would be waiting for your next play. And remember, the penality would be pretty "STIFF" in those days.