All chips are "legitimate" if they are what they are represented to be. Josh's website makes the following claim.

"All chips are used in the Nevada Brothel's below. Some of the establishments use them for free drinks while others sell them in their gift shop."

It doesn't say whether they have true inlays or homemade paste-on stickers, and I can't tell from the scans. If Dave Whalen or someone else made up these chips and convinced the brothels to sell them in their gift shop, then Josh's statement is correct.

If they have paste-ons, I don't want them. If they have real inlays put in by the chip manufacturer, I wouldn't mind paying $5 each to put a few of the cuter ones in my collection.