Here is what the seller said: [Reading Ed's response, it seems likely that these chips are Montana and not Texas--I thought they might have traveled north after the Palace Poker Club closed in Galveston but if the diamond square wasn't used in Texas, maybe not. Anyway, here's the response.

Travis,

I'm sure these are from the Missoula Palace Bar. I traded for them at a
Pawn Shop that had picked them up in the 80's from a former employee of the
Palace; although I do not know anything about this employee. In researching
the chips, I came across a former Pitt Boss who worked at the Palace and
who is now retired in Polson, Montana, and he verified that my chips are
correct as I have them presented in my description #332227311. Some of
those that have surfaced recently may have been the 100 or so that I let
slip out of my hands about 6 months ago, but I doubt it. I was given a
choice of about 400 of these chips and I picked the best 100 or so for
resale. The remaining balance are rough at best, with much of the inlay ink
or coloring worn very thin. One can discern that the chips are from the
"Palace Saloon", or "Palace Poker" but they show at lot of wear. I can
still get my hands on them if someone out there want's to cut a deal with
me. Thanks for your concern over these chips; but you can be certain that
they are from The Palace in Missoula, MT! Please pass the word along to the
gentleman who originally inquired about the chips.

Lyle