This is not a complete code sample, specially if your instructor has provided you with it. More functionality will be added to it as the course goes on, to show you how a full program is built step by step. You have most probably jumped the gun and posted this partial code here.
Firstly, The function is not returning anything, which means it is evaluating something and it stops there, the result of evaluation cannot be used anywhere. Which basically means more statement will be added to this function till your reach the return statement.
Secondly, chips.lose_bet() is a statement calling a function .lose_bet() which is also not defined in this sample.
Third, the arguments in this function might as well be functions themselves that will be defined later; and when they will be defined the instructor, they may be called from this function. There are many possibilities in ways similar to this.
These few points are bigger holes in the above code than having extra arguments. Which basically means you have actually jumped the gun in trying to understand what is going on here. So continue with your course and you'll see.
unreferenced formal parameterwarning. Essentially I guess its a waste of memory, the only purpose being if you intend on using the argument in the future and just declare it as a placeholder / reminder?