Sounds like Harrah's Marina. They replaced most denominations with clay chips, but still have some odd denominations, like the $2.50 and $20 chips, of the Coin-In-Center type.
I think they still use pink $2.50 chips with a silver coin inserted in Atlantic City at either Harrahs or the Tropicana. (I know I've used them somewhere in the North East within the last year )
These stories are great. I've been sharing them with friends. Keep it up