The One With All The Haste - S4-E19
Revealing mistake: When they are using cards to bet on the Knicks tickets, watch Joey carefully as he goes to reshuffle the pack from behind the arm of the chair. It's obvious that there are two decks, and he is in fact switching them over. (00:13:40)
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.