Counterfeit chips are fake chips or tokens. A chip is a token or small disc used in lieu of currency in casinos. Counterfeit chips are usually rare due to high levels of surveillance and staff familiarity with chip design and coloring. This makes passing fake chips difficult.
The following is an example of state statute (Pennsylvania) defining the term.
Pursuant to [4 Pa.C.S. § 1103] Counterfeit Chip is defined as " Any object that is:
(1) used or intended to be used to play a table game at a certificate holder's licensed facility and which was not issued by that certificate holder for such use; or
(2) presented to a certificate holder for redemption if the object was not issued by the certificate holder.