Part III: Business & Regulation · Banking, Chips & Financial Operations

5. Non-Negotiable Chip (Dead Chip)

Chips

A non-negotiable chip, commonly called a “dead chip” in Asia-Pacific markets, is a chip that cannot be redeemed for cash and can only be used for wagering. These chips are primarily used in VIP and high-roller programs, particularly in Macau and other Asian gaming jurisdictions. When a player purchases non-negotiable chips (often through a junket operator), they receive chips that can only be used to gamble. If the player wins a bet, they are paid in standard cash-equivalent chips; if they lose, the dead chip is collected by the casino. This system allows casinos to track theoretical win and calculate rebate commissions accurately.

In practice

Macau’s entire VIP rolling chip system operates on non-negotiable chips. A typical junket commission ranges from 1.1% to 1.25% of total buy-in. Only Baccarat is typically offered under dead chip programs.

One entry from the Casino Industry Glossary — 1,157 terms written for surveillance, compliance and operations professionals rather than for players. Definitions describe industry usage; where a term carries a regulatory meaning, verify against the instrument that governs your jurisdiction.