<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549


                                  FORM 10-QSB


               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
                   For fiscal quarter ended January 31, 1998

                        COMMISSION FILE NUMBER: 0-24846

                         COLORADO CASINO RESORTS, INC.
             (Exact name of Registrant as specified in its Charter)


           TEXAS                                                  84-1303693
(State or other jurisdiction of                                 (IRS Employer
incorporation or organization)                               Identification No.)

                             304 SOUTH 8TH STREET
                                   SUITE 201
                          COLORADO SPRINGS, CO  80905
                                (719) 635-7047
         (Address, including zip code, and telephone number, including
            area code, of Registrant's principal executive offices)


     SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE EXCHANGE ACT:
                        COMMON STOCK, $0.001 PAR VALUE
                               (Title of Class)




Check whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.  Yes [X]  No [_]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date: 38,665,632 shares of common
stock, $0.001 par value per share.


                     DOCUMENTS INCORPORATED BY REFERENCE:
                                     None.


<PAGE>
 
                 COLORADO CASINO RESORTS, INC. & SUBSIDIARIES

                                     INDEX

<TABLE> 
<CAPTION> 

PART I.  FINANCIAL INFORMATION
         <S>                                                                                <C>
         Item 1.   Financial Statements
 
                   Consolidated Balance Sheets - (unaudited) for January 31, 1998 ..........  3

                   Consolidated Statement of Operations - (unaudited) for
                     January 31, 1998 and January 31, 1997 .................................  4
 
                   Consolidatjed Statements of Cash Flows - (unaudited) for
                     January 31, 1998 and January 31, 1997 .................................  5
 
                   Notes to Consolidated Financial Statements ..............................  6

         Item 2.   Management's Discussion and Analysis of Financial Condition as well as 
                   Future Plans ............................................................  7
 
PART II. OTHER INFORMATION
 
         Item 1.   Legal Proceedings ....................................................... 11

         Item 2.   Changes in Securities ................................................... 11

         Item 3.   Defaults upon Senior Securities ......................................... 11

         Item 4.   Submission of Matters to a Vote of Security Holders ..................... 11

         Item 5.   Other Information ....................................................... 11

         Item 6.   Exhibits and Reports .................................................... 11
 
         Signatures ........................................................................ 12
</TABLE> 

                  SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-QSB contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements
refer to events that could occur in the future or may be identified by the use
of words such as "intend," "plan," "believe," "anticipate," correlative words,
and other expressions indicating that future events are contemplated.  Such
statements are subject to inherent risks and uncertainties, and actual results
could differ materially from those projected in the forward-looking statements
as a result of certain of the risk factors set forth following and elsewhere in
this Quarterly Report on Form 10-QSB.


                                      -2-
<PAGE>
 
COLORADO CASINO RESORTS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
<TABLE> 
<CAPTION> 
 
                 ASSETS                   JANUARY 31,   OCTOBER 31,
                                              1998          1997
                                          -----------   -----------
<S>                                       <C>           <C>
CURRENT ASSETS
Cash & cash equivalents                   $ 1,344,008   $ 1,962,486
Inventory                                     158,722       182,641
Other                                         389,626       567,678
                                          -----------   -----------
   TOTAL CURRENT ASSETS                     1,892,356     2,712,805
                                          -----------   -----------
 
PROPERTY, PLANT & EQUIPMENT
Land                                       16,106,628    16,106,628
Building and improvements                  23,637,572    23,637,572
Furniture, fixtures & equipment             8,594,889     8,520,407
Accumulated depreciation & amortization    (3,858,515)   (3,259,534)
                                          -----------   -----------
   TOTAL PROPERTY, PLANT & EQUIPMENT       44,480,574    45,005,073
                                          -----------   -----------
 
OTHER ASSETS                                  637,562       657,976
                                          -----------   -----------
 
   TOTAL ASSETS                           $47,010,492   $48,375,854
                                          ===========   ===========
 
 
LIABILITIES & STOCKHOLDER'S EQUITY
 
CURRENT LIABILITIES
Accrued expenses                            1,588,502     1,827,187
Accrued interest payable, related party       906,181       506,593
Due to officers                                 3,913        62,745
Current portion, long-term debt             1,402,289     1,220,964
Current portion, capital lease                
 obligations                                  588,060       630,425
                                          -----------   -----------
   TOTAL CURRENT LIABILITIES                4,488,945     4,247,914
                                          -----------   -----------
 
CONVERTIBLE DEBENTURES, RELATED PARTY       5,516,988     5,516,988
LONG-TERM DEBT, RELATED PARTY               7,557,583     7,879,324
LONG-TERM DEBT                             20,303,469    20,851,322
OBLIGATION UNDER CAPITAL LEASE              2,215,945     2,065,010
                                          -----------   ----------- 
   TOTAL LIABILITIES                       40,082,930    40,560,558
                                          -----------   -----------
 
STOCKHOLDERS' EQUITY
 
Common stock, $0.001 par value,
 100,000,000 shares authorized, 
 38,665,632 and 38,665,632         
 issued and outstanding, respectively          38,666        38,666

Paid-in capital                            15,777,125    15,777,125
Retained earnings (accumulated deficit)    (8,888,229)   (8,000,496)
                                          -----------   -----------
   TOTAL STOCKHOLDERS' EQUITY               6,927,562     7,815,296
                                          -----------   -----------
 
   TOTAL LIABILITIES & STOCKHOLDERS'      
    EQUITY                                $47,010,492   $48,375,854
                                          ===========   ===========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements

                                      -3-
<PAGE>
 
COLORADO CASINO RESORTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
<TABLE>
<CAPTION>
 
                                          QUARTER ENDED   QUARTER ENDED
                                           JANUARY 31,     JANUARY 31,
                                               1998            1997
                                          -------------   ------------- 
<S>                                       <C>             <C>
OPERATING REVENUE
Casino                                    $   3,799,368   $   3,657,372
Hotel & gift shop                               410,372         407,906
Restaurant & bars                               431,973         321,113
Other                                            97,343           1,430
                                          -------------   ------------- 
   TOTAL OPERATING REVENUE                    4,739,056       4,387,821
                                          -------------   ------------- 
 
OPERATING EXPENSES
Casino                                        1,811,185       1,563,850
Hotel & gift shop                               271,384         260,533
Restaurant & bars                               628,189         604,613
Marketing/General and administrative          1,225,600       1,625,733
Depreciation and amortization                   517,746         650,715
                                          -------------   ------------- 
   TOTAL OPERATING EXPENSE                    4,454,104       4,705,444
                                          -------------   ------------- 
 
INCOME (LOSS) FROM OPERATIONS                   284,952        (317,623)
                                          -------------   ------------- 
 
NONOPERATING INCOME (EXPENSE)
Interest expense                              1,172,686       1,135,876
 
LOSS BEFORE INCOME TAXES                       (887,734)     (1,453,499)
                                          -------------   ------------- 
 
INCOME TAXES                                        ---             ---
 
NET LOSS                                  $    (887,734)  $  (1,453,499)
                                          =============   =============  
 
NET LOSS PER SHARE                        $     (0.0230)  $     (0.0420)
                                          =============   =============  
 
WEIGHTED AVERAGE NUMBER
   OF SHARES OUTSTANDING                     38,666,000      34,581,000
                                          =============   =============   
</TABLE>



                    [This section intentionally left blank]



  The accompanying notes are an integral part of these consolidated financial
                                  statements

                                      -4-
<PAGE>
 
<TABLE>
<CAPTION>
COLORADO CASINO RESORTS, INC.
CONSOLIDATED STATEMENT OF CASHFLOWS
 (Unaudited)
 
                                          QUARTER ENDED   QUARTER ENDED
                                           JANUARY 31,     JANUARY 31,
                                               1998            1997
                                          -------------   -------------
<S>                                       <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                  $    (887,734)  $  (1,453,499)
Noncash items
      Depreciation and amortization             517,746         650,715
      Amortization of debt issue costs          103,505         125,250
(Increase) decrease in:
      Inventory                                  23,919          64,149
      Other current assets                      178,052         545,582
      Other assets                             (571,495)       (288,068)
(Decrease) increase in:
      Accrued expenses                         (238,685)       (476,410)
      Interest payable, related party           399,588         319,381
                                          -------------   -------------
          Net cash provided (used) by        
           operating activities                (475,104)       (512,900)
                                          -------------   -------------
 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of land, building and equipment        (74,482)       (152,986)
Advances to officers                            126,332         379,617
                                          -------------   -------------
          Net cash provided (used) by          
           investing activities                  51,850         226,631
                                          -------------   -------------

CASH FLOWS FROM FINANCING ACTIVITIES
Advances from officers                          267,500         105,384
Borrowings, long-term debt                          ---         185,636
Repayments, long-term debt                     (140,983)            ---
Repayments, long-term debt, related            (321,741)            ---
 party
                                          -------------   -------------

          Net cash provided (used) by        
           financing activities                (195,224)        291,020
                                          -------------   -------------

INCREASE (DECREASE) IN CASH AND 
 EQUIVALENTS                                   (618,478)          4,751
                                          -------------   -------------
CASH AND EQUIVALENTS, BEGINNING               1,962,486       2,828,994
                                          -------------   ------------- 

CASH AND EQUIVALENTS, ENDING              $   1,344,008   $   2,833,745
                                          =============   =============  
</TABLE>



                    [This section intentionally left blank]



  The accompanying notes are an integral part of these consolidated financial
   statements

                                      -5-
<PAGE>
 
                 COLORADO CASINO RESORTS, INC. & SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A:  Summary of Significant Accounting Policies

The Company's accounting policies are outlined in the audited financial
statements included with the Company's most recent 10KSB.  There have been no
changes in accounting principles or practices in the current fiscal year.

NOTE B:  Long Term Debt

During the quarter ended January 31, 1998, the Company made total repayments of
$462,724, with $140,983 on long-term debt and $321,741 on long-term debt,
related party.

NOTE C:  Advances to/from Officers

A $200,000 note receivable to the Company listed in other current assets was
reclassified as advance to officers.  During the quarter ended January 31, 1998,
the Company advanced to officers $126,332, resulting in a net receivable from
officers of $263,587.  The officers advanced a total of $267,500 to the Company,
$263,587 was used to repay the outstanding receivable, with the balance of
$3,913 remaining as a payable to the officers at January 31, 1998.

NOTE D:  Stockholders' Equity

During the quarter, the Company issued to a new key member of the Company's
Board of Directors an option to acquire 20,000 shares of the Company's stock at
an exercise price of $2.00 per share.  Also, an option to acquire 30,000 shares
of the Company's common stock were issued to a key management team member at an
exercise price of $2.00 per share, with 10,000 shares vesting per year for a
period of three years.

NOTE E:  Income Taxes

The Company has an estimated deferred tax benefit of $350,500 for the quarter
ended January 31, 1998 which has been offset in full by a valuation allowance
due to the availability of a net operating loss carryforwards at January 31,
1998.



                    [This section intentionally left blank]

                                      -6-
<PAGE>
 
                  COLORADO CASINO RESORTS, INC. & SUBSIDIARIES


        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                          PLANS FOR FUTURE OPERATIONS

OVERVIEW AND PLAN OF OPERATION

Colorado Casino Resorts, Inc., ("CCRI" and/or the "Company") is in the business
of developing and operating casino and hotel resort properties.  Through its
wholly owned subsidiaries, Creeker's Inc. and Double Eagle Resorts, Inc., CCRI
is the owner of Creeker's Casino ("Creeker's") and the Double Eagle Hotel &
Casino (the "Double Eagle"), both located in Cripple Creek, Colorado.

During the quarter, the Company reported net operating revenues of $4.7 million,
an increase of $351,000, or 8.0% from the $4.4 million reported during the same
period in 1997.  The Company reported a net loss of $(888,000), or $(0.023) per
share, for the quarter ended January 31, 1998 compared to a net loss of $(1.5)
million, or $(0.042) per share, reported for the first quarter last year.
Although the Company's business is not considered to be seasonal, the highest
levels of business activity in Colorado occur during the tourist season (i.e.,
from May through September).  Its base level (i.e., November through May) is
fairly constant although inclement weather conditions during this period could
have an adverse effect on business levels in Colorado.  Although the Company
recorded a net loss, EBITDA (earnings before interest taxes depreciation and
amortization) totaled nearly $803,000, up $470,000 or 141.0% higher than the
$333,000 reported during the same period last year.  However, as a result of the
reclassification of the International Game Technology ("IGT") capital lease to
an operating lease, casino operating expenses increased for fiscal quarter ended
January 31, 1998 by approximately $420,000.  After adjusting for comparison
purposes, EBITDA for the first fiscal quarter of 1998 should be $1.2 million
compared to $333,000 reported in 1997, representing a 267.3% increase.

BUSINESS AND MARKETING STRATEGY

The Company's business strategy is to offer casino gaming and a full range of
amenities in a friendly atmosphere that caters to middle and upper-middle income
customers.  Incorporating the distinction between Creeker's Casino and the
Double Eagle Hotel & Casino in its marketing efforts, management believes it is
able to increase gaming activity at its respective casinos by attracting
customers from two market segments.

CREEKER'S CASINO

Creeker's Casino, resembling a Victorian-style historic structure of the late
1800's, is located at the corner of 3/rd/ Street and Bennett Avenue in the
center of town.  Creeker's offers its customers a friendly, "down-to-earth"
atmosphere in which to enjoy gaming activities.  Within its 19,000-square foot
casino, it offers 234 slot machines, two blackjack tables, two bars, a
restaurant featuring buffet-style meals, and entertainment areas.

Creeker's targets middle- to upper-income customers from the greater Colorado
Springs area and surrounding communities who prefer to make day trips to Cripple
Creek.  Because of its smaller size and "down-to-earth" atmosphere, Creeker's
appeals to many customers who enjoy a cozier environment and the personal touch
offered by its friendly employees.  Free pizza and a hearty buffet served in its
restaurant further heightens Creeker's attractiveness to this market segment.

DOUBLE EAGLE HOTEL & CASINO

Through the new Double Eagle Hotel & Casino, the Company established the first
major hotel and casino serving the greater Colorado Springs area with a growing
population base, approaching one million.  Unlike existing gaming facilities in
the Cripple Creek area, which offer limited or no overnight accommodations,
inconvenient parking and few non-gaming amenities, the Double Eagle features 158
hotel rooms and suites, a 400-space parking lot with free valet parking and
shuttle transportation, and a 45,000-square foot casino offering 681 slot
machines and five blackjack tables.  The facility also includes a 100-seat
restaurant, Lombard's Bar & Grill, two bars and a gift shop.  Located on the
southwest corner of Bennett Avenue and 5/th/ Street, where Route 67 and Bennett
Avenue intersect, the Double Eagle provides superior access and visibility to
motorists entering and exiting the City of Cripple Creek.

                                      -7-
<PAGE>
 
The Double Eagle appeals to higher income patrons because of its "Las-Vegas"
style casino atmosphere, quality hotel and restaurant facilities and a variety
of special events.  With the largest number of rooms and elegant suites in
Cripple Creek, free valet parking under a covered car port, and an exciting and
lively atmosphere, the Double Eagle attracts customers who enjoy spending
multiple days of gaming within a facility which offers the hospitality and
convenience of first-class accommodations.  In addition, the Company anticipates
that the planned convention facilities at the Double Eagle will attract new
players by capturing meeting and small convention business for the Double Eagle.
Ground breaking for the new convention facilities is planned for fourth quarter.
The Company has retained the architects to produce the design and development
plans.

EFFECTIVE MARKETING AND PROMOTION.  The Company's marketing strategy has been to
aggressively promote its two properties to customers in the identified market
segments.  Through the use of radio and print advertising, promotional coupons
and special events designed uniquely to address each market segment, management
attracts players to its respective properties.  Promotional allowances, such as
complimentary rooms, food, beverage and entertainment are used at both casinos
to reward and retain its customers.  Specifically, Creeker's promotes coupons
for free bus transportation, discounts on buffet meals, and cash and prizes
while the Double Eagle offers discounted and complimentary hotel rooms,
complimentary dinners at Lombard's Bar & Grill, and cash sweepstakes to attract
respective customers.

Management of the Double Eagle continues to reinforce its commitment to a high
growth strategy by improving its overall image and effectiveness through new and
innovative marketing programs, a redesigned casino floor layout with higher
payback percentages, an amusement arcade, and the introduction of a VIP lounge
for rated players.  In addition to free daily slot tournaments and special
events, the Double Eagle hosts live entertainment and music acts at its new
piano bar and lounge.

EMPHASIS ON SLOT PLAY.  Responding to the increased popularity of slot machines
over the past several years and recognizing that most revenues are generated by
slot machines in a limited stakes market, the Company has focused its gaming mix
toward slot, keno, and video poker machines.  To maximize capacity utilization,
management chose to reduce the number of slot machines at the Double Eagle,
improving the casino floor layout while increasing payout percentages.  The
Company continues to monitor payout percentages of its slot machines to ensure
that they remain competitive.

Increased slot play is also encouraged through the use of the slot club.  The
"Winners Circle" slot club and the use of a computerized player tracking system,
which monitors the wagering of its members, provides the Company with
information which assists management in planning and directing its marketing
efforts to its customers.  As members of the Winners Circle, patrons are
encouraged to insert their frequent player card into slot, keno, and video poker
machines while playing in the casino to earn points.  Using the tracking system
to track wagering, management rewards members of the Winners Circle based on
their point totals with various cash and gift prizes.  Currently, Creeker's and
the Double Eagle have a combined total of nearly 70,000 members in their
database.

Management believes that an integral component of attracting patrons in Cripple
Creek is adequate, nearby parking.  During the fourth quarter of fiscal 1997,
the Company acquired control of fifteen contiguous city lots, comprising
approximately 47,000 square feet (one city block), located adjacent to the
Double Eagle in Cripple Creek.  This property is currently used for guest
parking, accommodating approximately 250 automobiles.  The Company expects to
use the land in its expansion plans to build a multi-story parking garage, which
will accommodate over 400 automobiles, a convention center, a health club
facility, and additional hotel rooms.

Management continues to make significant investments in key management and
personnel.  Employee benefits, which include medical, dental and vision plans,
in addition to on-the-job training and advancement opportunities are offered to
attract and retain qualified individuals.

FUTURE PLANS.  Emphasis continues to be placed on the Company's technological
infrastructure in order to optimize the movement and management of timely
information.  Data integration and warehousing systems are currently being
reviewed for implementation in order to streamline real-time management and
assimilation of data for marketing and operational decisions.

The Company is proceeding with its plans to refinance high interest construction
debt.  It is anticipated that by third quarter, the Company will have secured
first phase financing which will be used to refinance approximately $20 million
of the construction debt while subsequent phases will be used to refinance the
balance of the high yield debt as well as provide working capital for the
Company's daily operations and expansion efforts.  The Company is also
evaluating several opportunities in other gaming jurisdictions, both domestic
and international.

                                      -8-
<PAGE>
 
COMPANY REVENUE

The Company reported net operating revenues for the quarter ended January 31,
1998 of $4.74 million, an increase of over $351,000, or 8.0% from the $4.39
million reported for the same quarter in 1997.  Casino revenues increased nearly
$142,000, up 3.9% from the $3.66 million recorded for the same quarter last year
to $3.80 million.  Revenues from the hotel and gift shop were relatively flat at
$410,000 compared to the $408,000 reported for fiscal quarter ended January 31,
1997.  However, restaurant and bar revenues improved by 34.5%, up almost
$111,000 to $432,000 in fiscal quarter 1998.

During the quarter, the Company reported over $97,000 in other revenues compared
to the $1,400 reported during the same fiscal quarter in 1997.  This increase is
primarily due to proceeds from the Company's recently implemented parking
operations and amusement arcade.

ACQUISITIONS

There were no acquisitions of any significance during this quarter.

SALE OF STOCK

There was no sale of stock during this quarter.

RESULTS OF OPERATIONS

The Company reported net operating revenues for fiscal quarter ended January 31,
1998 of $4.74 million, an increase of over $351,000, or 8.0% from the $4.39
million recorded in 1997.  Generating more than 80% of the total revenues, the
Company's casino operations produced revenues of nearly $3.8 million.  Total
operating expenses were $4.45 million for fiscal quarter ended January 31, 1998,
a decrease of over $251,000, or -5.3% from $4.71 million reported for the same
fiscal quarter in 1997.  Total operating expenses as a percentage of total
revenues decreased to 94.0% from 107.2% recorded in the first fiscal quarter of
1997.

CASINO.  Casino revenues increased over $142,000, up 3.9% from first fiscal
quarter 1997 casino revenues of $3.7 million to $3.8 million.  Costs and
expenses of casino operations were $1.8 million for fiscal quarter ended January
31, 1998, an increase of $247,000 or 15.8% from $1.6 million for fiscal quarter
1997.  Casino costs and expenses as a percentage of casino revenues increased to
47.7% in 1998 from 42.8% during the same period in 1997.  The increase in casino
costs and expenses was primarily due to the inclusion of the operating lease
expense of approximately $420,000 associated with the reclassification if the
IGT slot machine lease.

HOTEL AND GIFT SHOP.  Revenues from the hotel and gift shop amounted to over
$410,000 for the first fiscal quarter 1998, practically no change from the
$408,000 reported during the same quarter last year.  Hotel and gift shop
revenues accounted for 8.7% of total consolidated revenues.  Costs and expenses
of hotel and gift shop operations were $271,000 for the first fiscal quarter of
1998, an increase of $11,000 or 4.2% from $260,000 reported in 1997.  Hotel and
gift shop costs and expenses as a percentage of hotel and gift shop revenues
increased to 66.1% from 63.9% during the same period in 1997.

RESTAURANT AND BAR.  Restaurant and bar revenues improved by 34.5%, up nearly
$111,000 to $432,000 for fiscal quarter ended January 31, 1998.  Costs and
expenses of restaurant and bars were $628,000 for the first fiscal quarter of
1998, an increase of almost $24,000 or 3.9% from $605,000 recorded in 1997.
Restaurant and bar costs and expenses as a percentage of restaurant and bar
revenues decreased to 145.4% from 188.3% during the same period in 1997.

MARKETING/GENERAL AND ADMINISTRATIVE.  Marketing and general and administrative
expenses were $1.2 million for fiscal quarter ended January 31, 1998, a decrease
of over $400,000 or -24.6% from $1.6 million reported for the same fiscal
quarter in 1997.  This reduction in expense was primarily due to lower general
and administrative expenses resulting from improved efficiencies and optimized
property-wide operations.  Marketing and general and administrative expenses as
a percentage of total revenues decreased to 25.9% from 37.1% during the first
fiscal quarter in 1997.

DEPRECIATION.  Depreciation was $518,000 for the fiscal quarter ended January
31, 1998, an decrease of nearly $133,000 or 20.4% from $651,000 for the same
fiscal quarter 1997.  The decrease in depreciation expense is primarily due to
the reduction of the number of slot machines at the Double Eagle.

                                      -9-
<PAGE>
 
INCOME FROM OPERATIONS.  As a result of factors discussed above, income from
operations was $285,000 for fiscal quarter ended January 31, 1998, an increase
of almost $603,000 or 189.7% from a loss of $(318,000) for the first fiscal
quarter of 1997.  As a percentage of total revenues, income from operations
increased to 6.0% during fiscal quarter 1998 from a loss of (7.2%) during the
same period in 1997.

INTEREST EXPENSE.  Interest expense was $1.2 million for fiscal quarter ended
January 31, 1998, a increase of only $37,000 or 3.2% from $1.1 million for
fiscal quarter 1997.  The increase in interest expense is due to additional debt
secured by the Company in connection with the acquisition of land and as a
result of restructured terms of certain lease agreements.

NET LOSS.  The net loss for the Company was $(888,000) for the fiscal quarter
ended January 31, 1998, a decrease of more than $(565,000) or 38.9% from a loss
of $(1.5) million reported in the first fiscal quarter of 1997.

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normally recurring accruals) considered necessary for a fair presentation
have been included.

Operating results for the quarter ending January 31, 1998 are not necessarily
indicative of the results that may be expected for the year ending October 31,
1998.  For further information, refer to the consolidated statements and
footnotes included in the Registrant's annual report on Form 10-KSB for the year
ending October 31, 1997.



                    [This section intentionally left blank]

                                     -10-
<PAGE>
 
                 COLORADO CASINO RESORTS, INC. & SUBSIDIARIES


                               OTHER INFORMATION


PART II. Other Information

Item 1.  Legal Proceedings

         The Company is party to various lawsuits relating to routine matters
         incidental to its business.  Management does not believe that the
         outcome of any such litigation, in aggregate, will have a material
         adverse effect on the Company.

Item 2.  Changes in Securities - None.

Item 3.  Defaults Upon Senior Securities - None.

Item 4.  Submission of Matters to Vote of Security Holders - None.

Item 5.  Other Information - None.

Item 6.  Exhibits and Reports - None.

                                     -11-
<PAGE>
 
                 COLORADO CASINO RESORTS, INC. & SUBSIDIARIES


                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of
1934, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized this 13th day of March,
1998.

                                          COLORADO CASINO RESORTS, INC.

March 13, 1998  By:                   By: /s/ Rudy S. Saenz
                                          --------------------
                                          Rudy S. Saenz
                                          President and Chief Executive Officer,
                                          Director (Principal Executive Officer)



March 13, 1998                        By: /s/ Farid E. Tannous
                                          -----------------------
                                          Farid E. Tannous
                                          Treasurer and Chief Financial Officer
                                          (Principal Financial Officer)

                                     -12-