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also, i thought only $100 bills played. throw that rule out the window too?

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That isn't universal.

Guess I'm confused as to why this annoys you so much. Two folks are wagering and they apparently are agreeing what the wagers were. You really want a 3rd person uninvolved in the hand to be able to throw a fit and prevent them from completing their transaction?

Now, if there IS controversy as to whether the cash was playing, seems fair to come down on the side of the rules. If player A says "he brought the cash out in the middle of the hand, of course it wasn't in play" and there's no evidence to the contrary, then it doesn't play. But if A and B both say "yeah, the $20 was in play"... let it.

Are you going to try to prevent the loser from just taking the $5 out of his pocket and handing it to the winner?