Gamblers could easily make counterfeits of these chips, which they add to their stacks for hassle-free cash-out. Of course, gambling chips were a better invention because they were handier and easier to manage and count. Chips were then made from wood, bone, or a mix of paper and clay. Shortly, these nuggets and coins were replaced by chips.
In the heydays of casinos, most gamblers used golden coins, gold nuggets, or sometimes gold dust as legal tender for gambling.