How did the local get away with passing chips

2004 Natonal Finals Las Vegas Binions 4/8 full round table. I am to the left of the dealer and the other local is in the seat after the end seat left of the dealer. All the rest are cowboys. Cowboy to the right of the other local calls any and all deals and busts out sometime later. Other local passes $40 in chips to Cowboy. Three more times $40 in chips passed. Both of us locals did well so I don't think the other local lost much. Other local tells me after the game he didn't want the game to break up. Why didn't Binions do anything about chip passing? Nothing ever happened to the other local