I couldn’t find any definitive information on this interesting token but I believe it was issued for the Venetian Festival in St. Joseph, Michigan, which was based on the Venice Carnival. It began in 1979 and ended in 2011. At its height, it was attended by about 100,000 people and include a carnival, car show, food, live music and fireworks.
Obv: Sailboat left on waves with “VENETIAN FESTIVAL” within a circle above and “on the St. Joseph River” below
Rev: blank
blue plastic, 25.7 mm, 1.15 gram