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However, the venue has now denied the claims, saying the singer is a 'true gentleman' who used 'real dollars'.
A dancer called Pisces posted a photo of the fake bills on a private social media account, before it was picked up by The Shade Room and went viral.
But the Sapphire Las Vegas Gentleman's Club has since said Usher did in fact use real money to tip staff.
Greg Wilson, the club's Director of Marketing, has said the confusion arose when someone from Usher's team left fake money with the singer's face on it at the club, promoting his upcoming Vegas residency.
In a statement to USA Today, Wilson said: "Usher was a true gentleman and a great guest at the club.
"He and his crew converted thousands of real dollars to tip the girls dancing on the stage."
Wilson also said the star 'left a generous tip for the staff'.
The image posted by Pisces shows notes of varying denominations, including fake $1, $20 and $100 bills.
As Wilson claimed, they also appear to promote his residency in Las Vegas, with 'The Las Vegas Residency' written under his name.
After the image went viral, Pisces re-shared it on her public page, writing: "Posted this on my private page and @theshaderoom got ahold of it, so I had to post on my public account.... The Shade Room knows @usher ain't right."
People then flocked to social media to call out the singer, saying it had been a 'scum bag move' and he should have paid the dancers 'REAL money'.
One Twitter user wrote: "Strippers, sex workers, IT'S ALL REAL WORK, and u scammed them hard working girls. Ur net worth is 180 million. They gave u a service, pay them."
Earlier this month, Usher had shared a photo of a suitcase stuffed with fake notes, which look identical to those photographed by Pisces.
His Las Vegas residency is set to begin in July 2021 at Caesars Palace Colosseum.
In a statement on the Caesars website, Usher said: "I have missed performing for my fans live and I am so excited to see them in Las Vegas. My residency at The Colosseum at Caesars Palace will be full of surprises and an Usher experience like they've never seen or heard before."
LADbible has reached out to Usher's record label for comment.
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