Dead Chip Programme

Detailed Explanation

Dead chips (non-negotiable chips, non-negs) are a hybrid VIP incentive used most extensively in Macau and Southeast Asian casino markets. Unlike standard chips, dead chips cannot be presented at the cage for cash. They must be wagered — once played through, the resulting wins are paid in standard (redeemable) chips. The deposited cash amount is also returned, less any commission agreed.

Under a dead chip arrangement: a player deposits $1 million, receives $1 million in dead chips plus a commission rebate (e.g., 1% = $10,000 in live chips or cash). They play with the dead chips; wins are paid in live chips. The dead chips disappear as they are wagered. The $1 million deposit is returned regardless of outcome.

For the player, the effective cost of the visit is the theoretical loss on $1 million in dead chip play (approximately $10,600 in baccarat at 1.06% edge), minus the $10,000 commission received — a theoretical cost of only $600 for $1 million in action. Dead chip programmes offer some of the best value per dollar deposited in the casino universe for sophisticated VIP players.