Maybe I misunderstood you but buying poker chips with illegal money does not launder money.
Money laundering is when illegal money is reported as income through some entity or person, most commonly through a business. It is then reported as income on some tax return in order to be considered cleaned.
Someone here described it perfectly:
He gambles here and there and has to spend large dollars because he’s getting millions illegally..he likely loses loses hundreds of thousands each year (which is why the casinos love him) and then just reports income or even creates fake 1099’s and reports $5 million of income on his return.
The $5 million is now clean.
“buying poker chips with illegal money does not launder money”
True, but cashing in the remaining chips after a small loss is where the 1099 is generated(you don’t cash the chips in at the table) - once tax is paid on the amount on the 1099 the money becomes clean - no need to create a fake 1099 when the casino gives you a real one that the IRS can match with your return - Casino loves the money you lost - IRS loves the tax on the 1099 “winnings” income - everybody happy and remaining money is CLEAN