Chips are small disks that represent money. They are easier to handle than cash, speed up play and keep track of bets at a table. Chip colors and values vary between casinos, so players should confirm the value of each color before playing. In a cash game, chips equal real money and can be exchanged at the cashier. In a tournament, chips are only a score that decides who is still in. Because chips feel less real than cash, it helps to keep track of the actual money being spent.
Example
At a table where a red chip is worth 5 units, a stack of 12 red chips is worth 60 units.