Sulaiman Masud took the chips from Victoria Gate Casino on Eastgate in Leeds city centre and lost them all gambling at the casino, Leeds Magistrates' Court was told.
Prosecutor, Lesley Cowling said Masud spotted the unused chips in a box on unoccupied roulette table just before 11.30pm on September 12 2019.
Miss Cowling said: "CCTV catches him opening the box and removing £1,300 of casino chips.
"Because he is a member, security have been able to identify him.
"He made full and frank admissions, indicating he had drink and gambling problems.
"He said he spent the chips and gambled them away."
Masud, aged 25, of Lodge Farm Close, Thornhill, Dewsbury, admitted theft.
Steven Higgins, mitigating, said: "He accepts he has a drink and a gambling problem and at times of stress when life's not going well for him he turns to alcohol and the urge to gamble arises.
"He had broke up with his girlfriend. Life wasn't going particularly well. He was out of work and he reverted, unfortunately, to type.
"He allowed his urges to drink and gamble to get the better of him.
"He made full and frank admissions to police and didn't even want to see the CCTV.
"He couldn't have been more co-operative with the police."
Lead magistrate John Ashton sentenced Masud to a 12-month community order and 15 rehabilitation activity days.
Masud must also do 80 hours unpaid work and pay £500 in compensation to the casino.