Chips for Free,
You are right in saying that even sites that specialize in “free chips” can generate real money players. Again it depends on how you get the traffic to the site. If the people who frequent your site are serious casino players who are looking for a place to find free chips to “test drive” casinos, then you can do well … as you said your friend does with his “no deposit casinos” site.
Over the years, we have received lots of real money players from “free games” sites, but in general, the conversion rate per click is much lower than for sites that speciailize in promoting real money gambling.