The chips they use are not relevant. They have these machines in the bars up north and you purchase a pile of quarters for an outrageous sum. From there you play them off and then can turn the quarters, plus any other prizes you get, back to the bar. The chips are equal to a cash equiv. There are lots of these Youtube videos.
Back when I started coming to LV, they had these machines on the casino floor and would be quarter for quarter. Whatever you got out of the machine you could turn in at the cage. I don't remember there being any additional prizes but this was at Circus Circus and Silver City. May of these machines, or the newer version, moved into Dave and Busters and arcades like that. Instead of coins, you would either get tickets added to your card, or specific playing cards that can be turned in for tickets.