Whether you're playing in a high-stakes poker game at a big-time casino, or simply playing for pocket change in your own basement, poker chips are an essential part of any gambler's arsenal. In order to play the game of poker, it is essential that you have some kind of understanding how to determine the value of each one of the colorful chips given to you at the start of a poker game, or else you're sure to end up penniless and heartbroken.

In the early days of gambling, players used gold pieces or any item of value when making wagers, and often times arguments would break out over exactly how much these items were worth. A standardized system of chips was introduced so that everyone could quickly determine, and agree upon, the size of any given wager. In the 1800s most poker chips were made out of clay. Today, plastic chips are often found in homes, while casinos have progressed towards acrylic chips containing microchips for tracking purposes and to avoid counterfeiting.

Most poker tournaments start with all players getting an equal number of chips, however, this amount does not have to be equal to actual "buy-in" for the tournament. If the buy-in was very low, say $10, it would be a very quick tournament if everyone simply received ten $1 chips. By using poker value chips that have no value away from the table, you can play without the need to "make change" or having a bunch of difficult to count pennies and nickels, cluttering up the table.

While each casino may have its own style or pattern of chips, in general, there is a standard color code for the value of chips in any casino. White chips are worth $1, pink chips are $2.50, red chips are $5, blue chips are $10, green chips are $25, black chips are $100, purple chips are $500, orange chips are $1,000 and gray chips are $5,000. In a poker tournament, casinos usually don't bother with any chip lower than red.

Chips used in poker tournaments do not have any value away from the table. However, if you're playing in a cash game, then the casino will use the same chips that you can use on any other table game, such as black jack. In these cash games, betting a green chip is the same as betting $25, and once you leave the table, you'll be able to cash out these chips for the stated face value. Try to do the same thing with the non-value checks from a tournament table and you'll only receive laughter in return.

With advancements in technology, there are already poker tables in existence that have no dealer, no cards and even no chips. A computerized touch-screen allows players to view their cards and make their wagers without the need for any poker chips whatsoever. While it may be a long time before poker players are comfortable to giving up the visual intimidation factor of a large stack of chips, or the tactile sensation of holding them in their hands, it may not be too fat off that poker chips go the way of the dinosaur.