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

                                  Form 10-K

(MARK ONE)

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
     EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998

                                      or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______TO______

                         Commission File No. 0-22088

                        Monarch Casino & Resort, Inc.
            (Exact name of registrant as specified in its charter)
                          -------------------------

                NEVADA                                88-0300760
     (State or other jurisdiction                  (I.R.S. Employer
   of incorporation or organization)              Identification No.)

     1175 W. MOANA LANE, SUITE 200
             RENO, NEVADA                               89509
        (Address of principal                         (Zip code)
          executive offices)

     Registrant's telephone number, including area code:  (775) 825-3355
                          -------------------------

         SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

                                                Name of each exchange
         Title of each class                     on which registered
         -------------------                     -------------------
                 None                                    None

         SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

                        COMMON STOCK, $0.01 PAR VALUE
                              (Title of Class)       

     Indicate by check mark 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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
<PAGE>
     The aggregate market value of voting stock held by nonaffiliates of the
Registrant as of March 19, 1999, based on the closing price as reported on The
Nasdaq Stock Market(SM) of $7.688 per share, was approximately $17,875,945.

     As of March 29, 1999, Registrant had outstanding 9,436,275 shares of
Common Stock.

                     DOCUMENTS INCORPORATED BY REFERENCE

     Portions of the Proxy Statement for Registrant's 1999 Annual Meeting of
Stockholders, which Proxy Statement shall be filed with the Commission not
later than 120 days after the end of the fiscal year covered by this report,
are incorporated by reference into Part III.

     STATEMENTS IN THIS ANNUAL REPORT ON FORM 10-K WHICH EXPRESS THE "BELIEF", 
"ANTICIPATION", "INTENTION", "EXPECTATION", OR "SCHEDULES" AS WELL AS OTHER 
STATEMENTS WHICH ARE NOT HISTORICAL FACT, AND STATEMENTS AS TO BUSINESS 
OPPORTUNITIES, MARKET CONDITIONS, COST ESTIMATIONS AND OPERATING PERFORMANCE 
INSOFAR AS THEY MAY APPLY PROSPECTIVELY, ARE FORWARD LOOKING STATEMENTS WITHIN 
THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF 
THE SECURITIES EXCHANGE ACT OF 1934 AND INVOLVE RISKS AND UNCERTAINTIES THAT 
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED. 




































                                     -2- <PAGE>
                                    PART I

ITEM 1. BUSINESS

     Monarch Casino & Resort, Inc., through its wholly-owned subsidiary Golden
Road Motor Inn, Inc. ("Golden Road"), owns and operates the tropically-themed
Atlantis Casino Resort in Reno, Nevada (the "Atlantis").  Unless otherwise
indicated, "Monarch" or the "Company" refers to Monarch Casino & Resort, Inc.
and its subsidiaries Golden Road, Dunes Marina Resort & Casino, Inc. ("Dunes
Marina"), and Sea World Processors, Inc. ("Sea World").  Monarch was
incorporated in 1993 under Nevada law for the purpose of acquiring all of the
stock of Golden Road.  The principal asset of Monarch is the stock of Golden
Road, which holds substantially all of the assets of the Atlantis.  The
Company's principal executive offices are located at 1175 West Moana Lane,
Suite 200, Reno, Nevada 89509, telephone (775) 825-3355.

THE ATLANTIS CASINO RESORT

     Through Golden Road, the Company owns and operates the tropically-themed
Atlantis, which is located approximately three miles south of downtown Reno in
the generally more affluent southwest area of Reno.  In the 1998 second
quarter, the Company began construction of a major expansion of the Atlantis
(the "Atlantis Expansion") that when completed, will represent an increase of
approximately 85% in the Company's investment in property and equipment at the
Atlantis.  The Atlantis expansion is currently scheduled for completion in the
1999 second quarter.  All descriptions in this report which reference
"following completion of the Atlantis Expansion" assume that the Atlantis
Expansion will be completed and opened to the public for business as scheduled. 
Based on current construction progress, the Company believes that the Atlantis
Expansion will be able to open for business in the 1999 second quarter, but due
to the possibility of the occurrence of unanticipated events, there is no
assurance that all portions of the Atlantis Expansion will be opened as
currently expected.

     The two primary components of the Atlantis Expansion are a new 27-story
hotel tower with approximately 392 new hotel rooms and suites with an adjoining
new low rise structure containing additional casino and public space (the
"Hotel Tower Project"), and an enclosed overhead "skywalk" structure connecting
the Atlantis with a 16 acre site across South Virginia Street from the
Atlantis, which contains approximately 8,000 square feet of casino and public
space (the "Skywalk").  The Skywalk was officially opened to the public on
March 18, 1999.

     Following completion of the Atlantis Expansion scheduled in the 1999
second quarter, the Atlantis will feature approximately 51,000 square feet of
casino space interspersed with waterfalls and water features, giant artificial
palm trees, thatched-roof huts and other tropical features; a hotel and a motor
lodge; eight food outlets; a nightclub; pool, health club and salon facilities;
retail outlets featuring traditional "gift shop" merchandise as well as
clothing and other merchandise adorned with the Atlantis logo; an 8,000 square-
foot family entertainment center; and approximately 25,000 square feet of
banquet, convention and meeting room space.  The Atlantis is the closest hotel
casino to the 370,000 square-foot Reno Sparks Convention Center (the
"Convention Center"), and the only hotel casino located within easy walking
distance of the Convention Center.



                                     -3- <PAGE>
     Casino.  Following completion of the Atlantis Expansion, the Atlantis'
casino will feature approximately 40 table games, including blackjack, craps,
roulette,  mini-baccarat, "Let it Ride(TM)", "Three Card Poker(TM)", "Fortune
Pai Gow Poker(TM)", and "Royal Match(TM)"; approximately 1,600 slot and video
poker machines; a race and sports book (which is operated by an independent
third party pursuant to a lease arrangement with the Company); and keno. 
During the year ended December 31, 1998, 76% of the Atlantis' casino revenue
was from slot and video poker machines, 22% was from table games, and the
remaining 2% was from keno.  

     The Atlantis offers what the Company believes to be higher-than-average
payout rates on slot machines and has adopted liberal rules for its blackjack
games which include using mostly single decks of cards at its tables and
allowing the player to "double down" on the first two cards.  The Company's
present policy is to extend gaming credit only to a limited number of qualified
customers.

     Lodging.  Following completion of the Atlantis Expansion, the Atlantis
will feature three contiguous high-rise hotel towers offering a total of 835
rooms and suites, and a low-rise motor lodge offering another 149 rooms, for a
total guest room count of 984.  The first of the three hotel towers was
completed in April 1991, and contains 160 rooms and suites in 13 stories.  The
second hotel tower was completed in September 1994 and contains 283 rooms and
suites in 19 stories.  The third tower, which is part of the Atlantis
Expansion, is scheduled to be completed in the 1999 second quarter and will
contain 392 rooms and suites in 27 stories; the top seven floors in the newest
tower are five feet wider on each side than the lower floors, enlarging
standard guest rooms on these floors be nearly 20% over the standard guest
rooms on the lower floors.  The rooms in these top seven floors will feature
premium appointments in addition to their larger square footage, and they will
be serviced by dedicated elevators and a dedicated concierge service in order
to accommodate guests seeking more upscale accommodations, as well as
convention and trade show visitors seeking upscale convention market amenities. 


     The Atlantis' hotel rooms feature fresh, colorful interior decorations and
furnishings consistent with the Atlantis' tropical theme, as well as nine-foot
ceilings (most standard hotel rooms feature eight-foot ceilings), which give
the rooms an open and spacious feel.  Following completion of the Atlantis
Expansion, the hotel will feature a four story waterfall with an adjacent
swimming pool in a climate controlled, five story glass enclosure which shares
an outdoor third floor pool deck with an outdoor swimming pool and whirlpool,
as well as health club and salon facilities.  The hotel also features glass
elevators rising the full 19 and 27 stories of the two taller hotel towers,
providing panoramic views of the northern Reno valley and the Sierra Nevada
mountains.

     The two-story, 149-room motor lodge, which has been operated by the
Company since 1973, is located on the back half of the Atlantis' 13-acre site. 
The motor lodge rooms, which are also decorated and furnished consistently with
the Atlantis' tropical theme, contain less average square footage than the
hotel rooms and have standard eight-foot ceilings.  The Company believes the
motor lodge rooms appeal to value conscious travelers who still want to enjoy
the experience of and amenities associated with a stay at a first-class hotel
casino resort.  The Company renovated all of the motor lodge units in early
1996.


                                     -4-<PAGE>
     The average occupancy rate at the Atlantis for fiscal years 1998, 1997,
and 1996 was 88.0%, 85.9%, and 88.7%, respectively.

     Dining.  Following completion of the Atlantis Expansion, the Atlantis will
feature eight food outlets, including a large buffet restaurant featuring a
wide variety of standard hot food line selections, salads and seafood, and
specialty substations featuring Mongolian Barbecue made to order, fresh Mexican
food, meats roasted in French Rotisserie ovens, and caesar and spinach salads
made to order; an upscale steak and seafood restaurant in an "under the sea"
atmosphere; an upscale, intimate Italian restaurant featuring a centrally
located wine "cellar" room and seasonal outdoor terrace seating; a twenty-four
hour coffee shop; a cafe restaurant featuring pizzas from a wood-fired brick
oven; a snack bar and soda fountain; an oyster bar, located on the skywalk,
featuring seafood flown in daily and soups and bisques made to order; and a
gourmet coffee bar, also located on the skywalk, featuring fine specialty
coffee drinks and pastries and desserts made fresh on property daily.

     The Skywalk.  The Skywalk is a one-of-a-kind structure, with a diamond-
shaped blue glass body rising approximately 55 feet from street level and
spanning 160 feet across South Virginia Street with no intermediate support
pillars.  It is supported at each end by two 100 foot tall Grecian columns
which erupt in flames at regular intervals.  The tropically-themed interior of
the Skywalk contains an oyster bar and a gourmet coffee bar with adjacent table
seating, a video poker bar and numerous banks of slot machines, and a lounge
area featuring oversized leather sofas and chairs.  The Skywalk connects the
Atlantis with additional parking on a 16 acre site owned by the Company across
South Virginia Street from the Atlantis. 

     Capital expenditures (including those financed with debt and capitalized
lease obligations) at the Atlantis totaled approximately $27.2 million, $2.3
million, and $2.8 million in fiscal years 1998, 1997, and 1996, respectively.  
Capital expenditures during 1998 primarily reflect construction costs
associated with the Atlantis Expansion, and the expenditures for 1997 and 1996
were primarily directed toward ongoing refurbishments and enhancements to the
Atlantis, including equipment replacements.  During 1996, the Company also
renovated all of the Atlantis' motor lodge rooms at a total cost of
approximately $690 thousand.  

     Operations at the Atlantis are conducted 24 hours a day, every day of the
year.  The Atlantis' business is moderately seasonal in nature, with its
highest revenues typically occurring in the summer months and lower amounts
generally in the winter months.  

MARKETING

     The Company's revenues and operating income are largely dependent on the
level of gaming activity at the Atlantis' casino; therefore, the Company's
predominant marketing goal is to attract gaming customers to its casino.  The
Company's primary objective for its hotel, food and beverage outlets, and other
amenities is to utilize those facilities to generate additional casino play,
although as a secondary goal the Company also seeks to maximize revenues from
those areas.

     The Company's marketing efforts are directed toward three broad consumer
groups:  Reno area residents, non-conventioneer visitors to the Reno area, and
conventioneers.  The Company believes that the Atlantis' location outside the 


                                     -5- <PAGE>
downtown area and near the Convention Center makes the property appealing to
all three groups.

     Reno area residents.  The Atlantis' proximity to rapidly growing,
generally more affluent southwestern Reno residential areas provides a
significant source of middle to upper-middle income gaming customers.  The
Company markets to Reno area residents ("Locals") primarily on the basis of the
Atlantis' location and accessibility, the quality and ambiance of the Atlantis
facility, friendly efficient service, the quality and relative value of its
food and beverage offerings, entertainment offerings, promotions, and gaming
values.  The Company believes that Locals as a group tend to prefer slot and
video poker machines over table games, and tend to prefer video poker machines
over reel-spinning (or electronically simulated reel-spinning) slot machines. 
Accordingly, the Atlantis provides a large, diverse selection of video poker
machines.  Moreover, the Company believes that Locals tend to seek out and
frequent those casinos with higher-than-average payout rates on slot and video
poker machines and liberal rules on table games.  The Company believes that the
Atlantis offers higher-than-average payout rates on slot machines, and has
adopted liberal rules for its blackjack games which include using mostly single
decks of cards at its tables and allowing players to "double down" on the first
two cards.

     Non-conventioneer Visitors.  Reno is a popular gaming and vacation
destination which enjoys direct freeway access to nearly all major northern
California population centers, and non-stop air service from most large cities
in the western United States as well as many midwest and southern population
centers such as Chicago, Dallas, Minneapolis and St. Louis.  The principal
segments of Reno's non-conventioneer visitor market are leisure travelers,
package tour and travel customers, and higher-level wagerers.  The Company
attempts to maximize its gaming revenues and hotel occupancy through a balanced
marketing approach addressing each market segment.

     Leisure travelers are not affiliated with groups and make their
reservations directly with hotels of their choice or through independent travel
agents.  The Company believes that this segment is largely comprised of
individuals driving, and to a lesser extent, flying to Reno from a regional
market, primarily California and to a lesser extent, the Pacific Northwest. 
The Company strives to attract the middle to upper-middle income strata of this
segment through advertising and direct marketing in select markets.  This
segment represents a significant portion of the Atlantis' customers, especially
those customers visiting on weekends.

     The package tour and travel segment consists of visitors who utilize
travel "packages" produced by wholesale operators.  The Company markets to this
segment through relationships with select wholesalers, primarily to generate
customer visits and supplement occupancy mid-week.  

     The Company selectively markets to higher-level wagerers through direct
sales.  The Company utilizes complimentary rooms, food and beverage, special
events and the extension of gaming credit to attract higher-level wagerers.

     Conventioneers.  Convention business, like package tour and travel,
generates mid-week customer visits and supplements occupancy during low-demand
periods.  Conventioneers typically also pay higher average room rates than non-
conventioneers.  The Company seeks those convention and meeting groups which it
believes will materially enhance the Atlantis' average occupancy rate and
average daily room rates, as well as those the Company believes will be 

                                     -6- <PAGE>
more likely to gamble.  As the only hotel casino within easy walking distance
of the Convention Center, the Company believes the Atlantis is uniquely
positioned to capitalize on this segment.  The Company believes that this
market segment is presently underserved in the Reno area, and that the
additional rooms and amenities added with the Atlantis Expansion will enhance
the Company's ability to realize the potential of this market segment.

     The Company markets to all customer segments, including conventioneers, on
the basis of the quality and ambiance of the Atlantis facility, friendly
efficient service, the quality and relative value of its rooms and food and
beverage offerings, entertainment offerings, promotions, and gaming values.

     The Company has instituted a frequent player club, "Club Paradise", which
allows the Atlantis' customers to earn rewards and special privileges based on
the amount of their play, while at the same time allowing the Company to track
the play of those customers utilizing a computerized player tracking system. 
The Company uses this information to determine appropriate levels of
complimentary awards, and also in its direct marketing efforts.  The Company
believes that Club Paradise significantly enhances the Company's ability to
build customer loyalty and generate repeat customer visits.  

COMPETITION

     Competition in the Reno area gaming market is intense.  Based on
information obtained from the December 31, 1998 Gaming Revenue Report published
by the Nevada State Gaming Control Board and Company estimates, the Company
believes that there are approximately 16 casinos in the Reno area which
generate more than $12 million each annually in gaming revenues, approximately
nine of which are located in downtown Reno.  

     The Company believes that the Atlantis' competition for Locals comes
primarily from other large-scale casinos located outside of downtown Reno that
offer amenities that appeal to middle to upper-middle income customers, and
secondarily with those casinos located in downtown Reno which offer similar
amenities.   The Company competes for Locals primarily on the basis of the
desirability of its location, the quality and ambiance of the Atlantis
facility, friendly efficient service, the quality and relative value of its
food and beverage offerings, entertainment offerings, promotions, and gaming
values.  The Company believes its proximity to residential areas in southwest
and southeast Reno and its abundant surface parking afford it an advantage over
the casinos located in downtown Reno in attracting Locals.

     The Company believes that the Atlantis' primary competition for non-
conventioneer visitors comes from other large-scale casinos, including those
located in downtown Reno and those located away from downtown Reno, that offer
amenities that appeal to middle to upper-middle income customers. The Company
competes for non-conventioneer visitors on the basis of the desirability of its
location, the quality and ambiance of the Atlantis facility, friendly efficient
service, the quality and relative value of its rooms and food and beverage
offerings, entertainment offerings, promotions, and gaming values. The Company
believes that its location away from downtown Reno is appealing to many
customers who prefer to avoid the more congested downtown Reno area; however,
the Atlantis' location is a disadvantage in that it does not afford the Company
the ability to generate walk-in traffic, which is a significant source of
customers for some casinos located in downtown Reno.



                                     -7- <PAGE>
     The Company believes that the Atlantis' primary competition for
conventioneers comes from other large-scale hotel casinos in the Reno area that
actively target the convention market segment, and secondarily from other
cities on the U.S. west coast with large convention facilities and substantial
hotel capacity, including Las Vegas.  The Company competes for conventioneers
based on the desirability of its location, the quality and ambiance of the
Atlantis facility, meeting and banquet rooms designed to appeal to conventions
and groups, friendly efficient service, and the quality and relative value of
its rooms and food and beverage offerings.  The Company believes that the
Atlantis' proximity to the Convention Center affords it a distinct competitive
advantage in attracting conventioneers. 

     The Atlantis also competes for gaming customers with hotel casino
operations located in other parts of Nevada, especially Las Vegas and Lake
Tahoe, and with hotel casinos, Indian casinos, and riverboat casinos located
elsewhere throughout the United States and the world.  The Company believes
that the Atlantis also competes to a lesser extent with state-sponsored
lotteries, off-track wagering, card parlors, and other forms of legalized
gaming, particularly in California and the Pacific Northwest.  

     The Company believes that the legalization of unlimited land-based casino
gaming in or near any major metropolitan area in the Atlantis' key marketing
areas, such as San Francisco or Sacramento, could have a material adverse
effect on its business.

REGULATION AND LICENSING

Nevada Gaming Regulation

     The ownership and operation of casino gaming facilities in Nevada are
subject to: (i) the Nevada Gaming Control Act and the regulations promulgated
thereunder (collectively, the "Nevada Act"); and (ii) various local
regulations.  The Company's gaming operations are subject to the licensing and
regulatory control of the Nevada Gaming Commission (the "Nevada Commission"),
the Nevada State Gaming Control Board (the "Nevada Board"), and the Reno City
Council (the "Reno Board").  (The Nevada Commission, the Nevada State Gaming
Control Board, and the Reno Board are collectively hereinafter referred to as
the "Nevada Gaming Authorities.") 

     The laws, regulations and supervisory procedures of the Nevada Gaming
Authorities are based upon declarations of public policy which are concerned
with, among other things: (i) the prevention of unsavory or unsuitable persons
from having a direct or indirect involvement with gaming at any time or in any
capacity; (ii) the establishment and maintenance of responsible accounting
practices and procedures; (iii) the maintenance of effective controls over the
financial practices of licensees, including the establishment of minimum
procedures for internal fiscal affairs and the safeguarding of assets and
revenues, providing reliable record keeping and requiring the filing of
periodic reports with the Nevada Gaming Authorities; (iv) the prevention of
cheating and fraudulent practices; and (v) providing a source of state and
local revenues through taxation and licensing fees.  Changes in such laws,
regulations and procedures could have an adverse effect on the Company's gaming
operations.  

     Golden Road, which operates the Atlantis, is required to be licensed by
the Nevada Gaming Authorities.  The gaming license requires the periodic
payment of fees and taxes and is not transferable.  The Company is registered 

                                     -8- <PAGE>
by the Nevada Commission as a publicly traded corporation ("Registered
Corporation") and as such, it is required periodically to submit detailed
financial and operating reports to the Nevada Commission and furnish any other
information which the Nevada Commission may require.  No person may become a
stockholder of, or receive any percentage of profits from, Golden Road without
first obtaining licenses and approvals from the Nevada Gaming Authorities.  The
Company and Golden Road have obtained from the Nevada Gaming Authorities the
various registrations, approvals, permits and licenses required in order to
engage in gaming activities in Nevada.  

     The Nevada Gaming Authorities may investigate any individual who has a
material relationship to, or material involvement with, the Company or Golden
Road in order to determine whether such individual is suitable or should be
licensed as a business associate of a gaming licensee.  Officers, directors and
key employees of Golden Road must file applications with the Nevada Gaming
Authorities and may be required to be licensed or found suitable by the Nevada
Gaming Authorities.  Officers, directors and key employees of the Company who
are actively and directly involved in gaming activities of Golden Road may be
required to be licensed or found suitable by the Nevada Gaming Authorities. 
The Nevada Gaming Authorities may deny an application for licensing for any
cause which they deem reasonable.  A finding of suitability is comparable to
licensing, and both require submission of detailed personal and financial
information followed by a thorough investigation.  The applicant for licensing
or a finding of suitability must pay all the costs of the investigation. 
Changes in licensed positions must be reported to the Nevada Gaming Authorities
and in addition to their authority to deny an application for a finding of
suitability or licensure, the Nevada Gaming Authorities have jurisdiction to
disapprove a change in a corporate position.

     If the Nevada Gaming Authorities were to find an officer, director or key
employee unsuitable for licensing or unsuitable to continue having a
relationship with the Company or Golden Road, the companies involved would have
to sever all relationships with such person.  In addition, the Nevada
Commission may require the Company or Golden Road to terminate the employment
of any person who refuses to file appropriate applications.  Determinations of
suitability or of questions pertaining to licensing are not subject to judicial
review in Nevada.  

     The Company and Golden Road are required to submit detailed financial and
operating reports to the Nevada Commission.  Substantially all material loans,
leases, sales of securities and similar financing transactions by Golden Road
must be reported to, or approved by, the Nevada Commission.  

     If it were determined that the Nevada Act was violated by Golden Road, the
gaming licenses it holds could be limited, conditioned, suspended or revoked,
subject to compliance with certain statutory and regulatory procedures.  In
addition, Golden Road, the Company, and the persons involved could be subject
to substantial fines for each separate violation of the Nevada Act at the
discretion of the Nevada Commission.  Further, a supervisor could be appointed
by the Nevada Commission to operate the Company's gaming properties and, under
certain circumstances, earnings generated during the supervisor's appointment
(except for the reasonable rental value of the Company's gaming properties)
could be forfeited to the State of Nevada.  Limitation, conditioning or
suspension of any gaming license or the appointment of a supervisor could (and
revocation of any gaming license would) materially adversely affect the
Company's gaming operations.  


                                     -9- <PAGE>
     Any beneficial holder of the Company's voting securities, regardless of
the number of shares owned, may be required to file an application, be
investigated, and have his suitability as a beneficial holder of the Company's
voting securities determined if the Nevada Commission has reason to believe
that such ownership would otherwise be inconsistent with the declared policies
of the State of Nevada.  The applicant must pay all costs of investigation
incurred by the Nevada Gaming Authorities in conducting any such investigation.

     The Nevada Gaming Act requires any person who acquires more than 5% of the
Company's voting securities to report the acquisition to the Nevada Commission. 
The Nevada Act requires that beneficial owners of more than 10% of the
Company's voting securities apply to the Nevada Commission for a finding of
suitability within 30 days after the Chairman of the Nevada Board mails the
written notice requiring such filing.  Under certain circumstances, an
"institutional investor," as defined in the Nevada Act, which acquires more
than 10%, but not more than 15%, of the Company's voting securities may apply
to the Nevada Commission for a waiver of such finding of suitability if such
institutional investor holds the voting securities for investment purposes
only.  An institutional investor shall not be deemed to hold voting securities
for investment purposes unless the voting securities were acquired and are held
in the ordinary course of business as an institutional investor and not for the
purpose of causing, directly or indirectly, the election of a majority of the
members of the board of directors of the Company, any change in the Company's
corporate charter, bylaws, management, policies or operations of the Company,
or any of its gaming affiliates, or any other action which the Nevada
Commission finds to be inconsistent with holding the Company's voting
securities for investment purposes only. Activities which are not deemed to be
inconsistent with holding voting securities for investment purposes only
include: (i) voting on all matters voted on by stockholders; (ii) making
financial and other inquiries of management of the type normally made by
securities analysts for informational purposes and not to cause a change in its
management, policies or operations; and (iii) such other activities as the
Nevada Commission may determine to be consistent with such investment intent. 
If the beneficial holder of voting securities who must be found suitable is a
corporation, partnership or trust, it must submit detailed business and
financial information including a list of beneficial owners.  The applicant is
required to pay all costs of investigation.

     Any person who fails or refuses to apply for a finding of suitability or a
license within 30 days after being ordered to do so by the Nevada Commission or
the Chairman of the Nevada Board, may be found unsuitable.  The same
restrictions apply to a record owner if the record owner, after request, fails
to identify the beneficial owner.  Any stockholder found unsuitable and who
holds, directly or indirectly, any beneficial ownership of the common stock of
a Registered Corporation beyond such period of time as may be prescribed by the
Nevada Commission may be guilty of a criminal offense.  The Company is subject
to disciplinary action if, after it receives notice that a person is unsuitable
to be a stockholder or to have any other relationship with such Company or
Golden Road, the Company (i) pays that person any dividend or interest upon
voting securities of the Company, (ii) allows that person to exercise, directly
or indirectly, any voting right conferred through securities held by that
person, (iii) pays remuneration in any form to that person for services
rendered or otherwise, or (iv) fails to pursue all lawful efforts to require
such unsuitable person to relinquish his voting securities for cash at fair
market value.


                                     -10- <PAGE>
     The Nevada Commission may, in its discretion, require the holder of any
debt security of a Registered Corporation to file applications, be investigated
and be found suitable to own the debt security of a Registered Corporation.  If
the Nevada Commission determines that a person is unsuitable to own such
security, then pursuant to the Nevada Act, the Registered Corporation can be
sanctioned, including the loss of its approvals, if without the prior approval
of the Nevada Commission, it: (i) pays to the unsuitable person any dividend,
interest, or any distribution whatsoever; (ii) recognizes any voting right by
such unsuitable person in connection with such securities; (iii) pays the
unsuitable person remuneration in any form; or (iv) makes any payment to the
unsuitable person by way of principal, redemption, conversion, exchange,
liquidation or similar transaction.

     The Company is required to maintain a current stock ledger in Nevada which
may be examined by the Nevada Gaming Authorities at any time.  If any
securities are held in trust by an agent or by a nominee, the record holder may
be required to disclose the identity of the beneficial owner to the Nevada
Gaming Authorities.  A failure to make such disclosure may be grounds for
finding the record holder unsuitable.  The Company is also required to render
maximum assistance in determining the identity of the beneficial owner.  The
Nevada Commission has the power to require the Company's stock certificates to
bear a legend indicating that the securities are subject to the Nevada Act.

     The Company may not make a public offering of its securities without the
prior approval of the Nevada Commission if the securities or proceeds therefrom
are intended to be used to construct, acquire or finance gaming facilities in
Nevada, or to retire or extend obligations incurred for such purposes.  Such
approval does not constitute a finding, recommendation or approval by the
Nevada Commission or the Nevada Board as to the accuracy or adequacy of the
prospectus or the investment merits of the securities.  Any representation to
the contrary is unlawful.

     Changes in control of the Company through merger, consolidation, stock or
asset acquisitions, management or consulting agreements, or any act or conduct
by a person whereby he obtains control, may not occur without the prior
approval of the Nevada Commission.  Entities seeking to acquire control of a
Registered Corporation must satisfy the Nevada Board and Nevada Commission in a
variety of stringent standards prior to assuming control of such Registered
Corporation.  The Nevada Commission may also require controlling stockholders,
officers, directors and other persons having a material relationship or
involvement with the entity proposing to acquire control, to be investigated
and licensed as part of the approval process relating to the transaction.

     The Nevada legislature has declared that some corporate acquisitions
opposed by management, repurchases of voting securities and corporate defense
tactics affecting Nevada gaming licensees, and Registered Corporations that are
affiliated with those operations, may be injurious to stable and productive
corporate gaming.  The Nevada Commission has established a regulatory scheme to
ameliorate the potentially adverse effects of these business practices upon
Nevada's gaming industry and to further Nevada's policy to: (i) assure the
financial stability of corporate gaming operators and their affiliates; (ii)
preserve the beneficial aspects of conducting business in the corporate form;
and (iii) promote a neutral environment for the orderly governance of corporate
affairs.  Approvals are, in certain circumstances, required from the Nevada
Commission before the Company can make exceptional repurchases of voting
securities above the current market price thereof and before a corporate
acquisition opposed by management can be 

                                     -11- <PAGE>
consummated.  The Nevada Act also requires prior approval of a plan of
recapitalization proposed by the Company's Board of Directors in response to a
tender offer made directly to the Registered Corporation's stockholders for the
purposes of acquiring control of the Registered Corporation.

     Licensee fees and taxes computed in various ways depending on the type of
gaming or activity involved, are payable to the State of Nevada and to the
counties and cities in which the Nevada licensee's respective operations are
conducted. Depending upon the particular fee or tax involved, these fees and
taxes are payable either monthly, quarterly or annually and are based upon
either: (i) a percentage of the gross revenues received; (ii) the number of
gaming devices operated; or (iii) the number of table games operated.  A casino
entertainment tax is also paid by casino operations where entertainment is
furnished in connection with the selling of food or refreshments.  Nevada
licensees that hold a license as an operator of a slot route, a manufacturer or
a distributor also pay certain fees and taxes to the State of Nevada.

     Any person who is licensed, required to be licensed, registered, required
to be registered, or is under common control with such persons (collectively,
"Licensees"), and who proposes to become involved in a gaming venture outside
of Nevada is required to deposit with the Nevada Board, and thereafter
maintain, a revolving fund in the amount of $10,000 to pay the expenses of
investigation of the Nevada Board of their participation in such foreign
gaming.  The revolving fund is subject to increase or decrease in the
discretion of the Nevada Commission.  Thereafter, Licensees are required to
comply with certain reporting requirements imposed by the Nevada Act.  A
licensee is also subject to disciplinary action by the Nevada Commission if it
knowingly violates any laws of the foreign jurisdiction pertaining to the
foreign gaming operation, fails to conduct the foreign gaming operation in
accordance with the standards of honesty and integrity required of Nevada
gaming operations, engages in activities that are harmful to the State of
Nevada or its ability to collect gaming taxes and fees, or employs a person in
the foreign operation who has been denied a license or finding of suitability
in Nevada on the ground of personal unsuitability.

EMPLOYEES

     As of March 19, 1999, the Company had approximately 1,424 employees.  None
of the Company's employees are covered by collective bargaining agreements. 
The Company believes that its relationship with its employees is good.

ITEM 2. PROPERTIES

     The Company's properties consist of:

     (a)     The approximately 13 acre site in Reno, Nevada on which the
Atlantis is situated, including the hotel towers, casino, restaurant facilities
and surrounding parking.  These 13 acres are, in part or in whole, held subject
to trust deed encumbrances in favor of financial institutions totaling
approximately $67.9 million as of March 19, 1999.

     (b)     An approximately 16 acre site in Reno, Nevada adjacent to the
Atlantis and now connected to the Atlantis by the Skywalk, approximately seven
acres of which is paved and used for customer, employee and valet parking and
the remainder of which is undeveloped.  This site is suitable and available for
future expansion of the Atlantis facilities, parking, or 

                                     -12- <PAGE>
complimentary resort and/or entertainment amenities.  The Company has not
determined what the ultimate use of this site will be.  These 16 acres are held
subject to a trust deed encumbrance in the approximate amount of $66.1 million
as of March 19, 1999, which amount is also secured by the 13 acre site. 

ITEM 3. LEGAL PROCEEDINGS

     On April 26, 1994 and May 10, 1994, complaints in purported class action
lawsuits (William Poulos v. Caesars World, Inc. et al., Case No. 94-478-Civ-
Orl-22, and William H. Ahern v. Caesars World, Inc. et al., Case No. 94-532-
Civ-Orl-22, respectively) were filed in the United States District Court for
the Middle District of Florida (the "Florida Complaints") and were subsequently
transferred to the United States District Court for the District of Nevada,
Southern Division (the "Nevada District Court").  On September 26, 1995, a
complaint in a purported class action lawsuit (Larry Schrier v. Caesars World,
Inc. et al., Case No. 95-923-LDG (RJJ)) was filed in Nevada District Court
(along with the Florida Complaints, the "Complaints").  The Complaints allege
that manufacturers, distributors and casino operators of video poker and
electronic slot machines, including the Company, have engaged in a course of
conduct intended to induce persons to play such games based on a false belief
concerning how the gaming machines operate, as well as the extent to which
there is an opportunity to win on a given play.  The Complaints charge
Defendants with violations of the Racketeer Influenced and Corrupt
Organizations Act, as well as claims of common law fraud, unjust enrichment and
negligent misrepresentation, and seek damages in excess of $1 billion without
any substantiation of that amount.  The Nevada District Court consolidated the
actions (and one other action styled William Poulos v. American Family Cruise
Line, N.V. et al., Case No. CV -S-95-936-LDG (RLH), in which the Company is not
a named defendant).  The parties are currently awaiting a decision from the
Nevada U.S. District Court on the issue of class certification.  Management
believes that the substantive allegations in the Complaints are without merit
and intends vigorously to defend the allegations.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     There were no matters submitted to a vote of the Company's security
holders during the fourth quarter of fiscal 1998.




















                                     -13- <PAGE>
                                   PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

     (a)     The Company's common stock trades on The Nasdaq Stock Market(SM)
under the symbol MCRI.  The following table sets forth the high and low sales
prices of the Company's common stock, as reported by The Nasdaq Stock
Market(SM), during the periods indicated.

<TABLE>
<CAPTION>
                                   1998             1997
                              --------------   --------------
                               High    Low      High    Low
                              ------  ------   ------  ------
     <S>                       <C>    <C>       <C>     <C>
     First quarter...........  7 3/4   4 3/4    2 1/2       2
     Second quarter..........      7   5 3/8    4 3/8   2 1/4
     Third quarter...........  6 1/2   5 3/8    8 3/8   3 5/8
     Fourth quarter..........      6   4 3/4    7 3/8   4 1/2
</TABLE>

     (b)     As of March 19, 1999, there were approximately 140 holders of
record of the Company's common stock, and approximately 978 beneficial
stockholders.

     (c)     The Company paid no dividends in 1998 or 1997.  The Company
presently intends to retain earnings to finance the operation and expansion of
its business and does not anticipate declaring cash dividends in the 
foreseeable future.  The Company's bank loan agreement also contains provisions
which limit Monarch's ability to pay dividends to its stockholders.  See Item
8, "FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA, Notes to Consolidated
Financial Statements."

























                                     -14- <PAGE>
ITEM 6. SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
                                                      Years ended December 31,          
                                            --------------------------------------------
(In thousands except per share amounts)        1998<F1> 1997<F2> 1996<F3> 1995<F4> 1994
----------------------------------------------------------------------------------------
<S>                                          <C>      <C>      <C>      <C>      <C>
OPERATING RESULTS
Casino revenues                              $40,717  $37,254  $31,836  $30,072  $20,306
Other revenues                                31,802   30,365   29,476   30,099   21,482
                                            --------------------------------------------
Gross revenues                                72,519   67,619   61,312   60,171   41,788
Promotional allowances                       (10,009)  (8,504)  (7,676)  (6,772)  (5,348)
                                            --------------------------------------------
Net revenues                                  62,511   59,115   53,636   53,399   36,440
Income from operations                         8,859    8,975    6,049    6,351      636
Income (loss) before income
  taxes and extraordinary item                 5,681    5,722    1,298    2,323   (1,393)
Income (loss) before
  extraordinary item                           3,760    3,710      830    1,564     (722)
Net income (loss)                              3,760    3,526      830    1,564     (722)
----------------------------------------------------------------------------------------
INCOME PER SHARE OF COMMON STOCK
Income (loss) before extraordinary item
     Basic                                   $  0.40  $  0.39  $  0.09  $  0.16  $ (0.08)
     Diluted                                 $  0.40  $  0.39  $  0.09  $  0.16  $ (0.08)
Net income (loss)
     Basic                                   $  0.40  $  0.37  $  0.09  $  0.16  $ (0.08)
     Diluted                                 $  0.40  $  0.37  $  0.09  $  0.16  $ (0.08)
Weighted average number of common shares
  and potential common shares outstanding
     Basic                                     9,436    9,444    9,502    9,536    9,536
     Diluted                                   9,502    9,479    9,502    9,536    9,536
----------------------------------------------------------------------------------------
OTHER DATA
EBITDA<F5>                                    13,458   13,284   10,191   10,370    3,372
Depreciation and amortization                  4,617    4,309    4,142    4,020    2,736
Interest expense                               2,222    3,253    3,627    4,087    2,330
Capital expenditures<F6>                      27,206    2,270    2,838    2,148   31,384
----------------------------------------------------------------------------------------
BALANCE SHEET DATA
Total assets                                 $89,456  $67,828  $67,379  $69,269  $69,344
Current maturities of long-term debt             850    2,244    3,487    3,993    5,387
Long-term debt, less current maturities       52,310   32,908   37,602   39,069   41,357
Stockholders' equity<F7>                      26,453   22,694   19,001   18,435   16,871
<FN>
<F1> 1998 includes a non-cash disposal of fixed assets charge of $956 thousand.
<F2> 1997 includes a $185 thousand non-cash extraordinary loss on early retirement of 
     debt, net of applicable income tax benefit.
<F3> 1996 includes non-cash fixed asset impairment charges of $1.3 million (before 
     minority interests).
<F4> 1995 includes a $433 thousand provision for litigation expenses related to two
     unfavorable judgments rendered in unrelated cases, and a $459 thousand charge
     for asset impairment associated with changing the name of the Company's hotel
     casino to the Atlantis Casino Resort.
<F5> "EBITDA" consists of income from operations plus depreciation and amortization.
     EBITDA should not be construed as an alternative to operating income (as determined
     in accordance with generally accepted accounting principles) as an indicator of the
     Company's operating performance, or as an alternative to cash flows from operating
     activities (as determined in accordance with generally accepted accounting 
     principles) as a measure of liquidity.  This item enables comparison of the 
     Company's performance with the performance of other companies that report EBITDA.
<F6> Includes amounts financed with debt or capitalized lease obligations.
<F7> The Company paid no dividends during the five year period ended December 31, 1998.
</FN>
</TABLE>



                                     -15- <PAGE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS

STATEMENT ON FORWARD-LOOKING INFORMATION

     Certain information included herein contains statements that may be
considered forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
such as statements relating to anticipated expenses, capital spending and
financing sources.  Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results in the
future and, accordingly, such results may differ from those expressed in any
forward-looking statements made herein.  These risks and uncertainties include,
but are not limited to, those relating to competitive industry conditions,
Reno-area tourism conditions, dependence on existing management, leverage and
debt service (including sensitivity to fluctuations in interest rates), the
regulation of the gaming industry (including actions affecting licensing),
outcome of litigation, domestic or global economic conditions and changes in
federal or state tax laws or the administration of such laws.

RESULTS OF OPERATIONS

     1998 Compared with 1997

     For the year ended December 31, 1998, the Company earned $3.8 million, or
$.40 per share, on net revenues of $62.5 million, compared to earnings of $3.5
million, or $.37 per share, on net revenues of $59.1 million for the year ended
December 31, 1997.  The Company's income from operations totaled $8.9 million
for 1998 compared to $9.0 million for 1997.  The Company believes the Atlantis
continued to benefit in 1998 from the rapid growth occurring in the residential
and industrial communities south of the Atlantis in Reno, and from the
increasing popularity of the Atlantis with visitors to the Reno area.  The
Company also believes its results were positively impacted in 1998 by the
American Bowling Congress tournament, which ran from March through June 1998 at
the National Bowling Stadium in downtown Reno and which brought approximately
90,000 visitors to the Reno area.  However, the Company also believes its
results were detrimentally impacted in 1998 by unusually severe winter weather
in the first quarter of the year and by disruptions associated with the
Atlantis Expansion, which involved major construction activity on both sides of
the Atlantis during the third and fourth quarters of the year.

     Casino revenues totaled $40.7 million in 1998, up 9% from $37.3 million in
1997, driven by increases in both slot and table game win.  Revenue from slot
and video poker machines ("slot machines") increased approximately 8% in 1998
compared to 1997 due to an increase in the average daily win per slot machine. 
Table game win increased approximately 16% in 1998 compared to 1997 due to an
increase in table game drop and an improvement in table game hold.  Casino
operating expenses amounted to 43.7% of casino revenues in 1998, compared to
43.1% in 1997, primarily as a result of higher promotional allowance costs in
1998.

     Food and beverage revenues were up slightly in 1998, rising approximately
2% to $18.2 million from $17.8 million in 1997.  Food and beverage operating
expenses were basically unchanged, amounting to 54.2% of food and beverage
revenues in 1998 compared to 54.3% in 1997.



                                     -16- <PAGE>
     Hotel revenues totaled $10.9 million in 1998, up more than 7% from $10.2
million in 1997, driven by a 2.1 point improvement in the Atlantis' average
occupancy rate and a 5% increase in the Atlantis' average daily room rate
("ADR").  The Atlantis' ADR was $56.23 in 1998, compared to $53.50 in 1997. 
The average occupancy rate at Atlantis was 88.0% in 1998 compared to 85.9% in
1997.  Hotel operating expenses amounted to 32.6 % of hotel revenues in 1998,
compared to 36.4% in 1997, with the improvement reflecting increased operating
efficiencies and a higher level of revenue from which to offset the relatively
high level of fixed costs of the hotel operation.

     Other revenues increased approximately 15% in 1998 to $2.7 million from
$2.3 million in 1997, primarily reflecting increased revenues from the
Atlantis' retail outlet.  Other expenses equaled 18.0% of other revenues in
1998, down slightly from 18.5% in 1997.

     Selling, general and administrative ("SG&A") expenses totaled 27.7% of net
revenues in 1998, compared to 27.0% in 1997, with the increase primarily
reflecting higher personnel costs and higher marketing costs in 1998.  This
increase in part reflects additional marketing and administrative staff added
in preparation for the 1999 opening of the Atlantis Expansion, as well as
additional operating expenses associated with the Atlantis Expansion.

     Interest expense for 1998 totaled $2.2 million, down from $3.3 million in
1997, reflecting lower average interest rates on the Company's debt and the
capitalization of certain interest costs in 1998.  In 1998, the Company
capitalized approximately $433 thousand in interest costs related to
construction activities at the Atlantis.  During 1997, there was no capitalized
interest.  

     The Company incurred a non-cash expense of $956 thousand in the fourth
quarter of 1998 for the disposal of certain fixed assets in conjunction with
the Atlantis Expansion, including certain exterior walls, door and windows that
had to be removed to make way for the expanded facilities.  

     1997 Compared with 1996

     For the year ended December 31, 1997, the Company generated earnings
before extraordinary items of $3.7 million, or $.39 per share, compared to $830
thousand, or $.09 per share, for the year ended December 31, 1996.  After
giving effect to a non-cash extraordinary loss on the early retirement of debt
(net of an applicable income tax benefit) of $(185) thousand, or $(.02) per
share, the Company reported net income of $3.5 million or $.37 per share for
the fiscal year ended December 31, 1997, compared to $830 thousand, or $.09 per
share for the fiscal year ended December 31, 1996.  

     Net revenues for 1997 totaled $59.1 million, up 10% from $53.6 million in
1996, while operating costs and expenses rose 5% to $50.1 million in 1997 from
$47.6 million in 1996.  The Company's operating expense margin (operating
expenses as a percentage of net revenues) for 1997 was 84.8%, compared to 88.7%
for 1996, resulting in a 48% increase in income from operations to $9.0 million
in 1997 from $6.0 million in 1996.  The Company believes the increases in
revenue and profitability in 1997 compared to 1996 resulted from the increasing
popularity of the Atlantis and its south Reno location with patrons from the
rapidly growing residential and business communities south of the Atlantis in
Reno, as well as with visitors to the Reno area.  The Company also credits
effective casino marketing programs, and a continued emphasis on cost control.

                                     -17 <PAGE>
     Casino revenues increased 17% in 1997 compared to 1996, driven by growth
in both slot and table game win.  Revenue from slot machines increased
approximately 20% in 1997 compared to 1996, due to an increase in the average
daily win per slot machine, and contributed approximately 77% of casino revenue
in 1997, compared to 75% in 1996.  Table game win increased approximately 6% in
1997 compared to 1996, due to an approximately 17% increase in table game drop,
which was partially offset by a moderate decline in table game hold. 

     Casino operating expenses amounted to 43.1% of casino revenues during
1997, compared to 45.3% in 1996, with the higher expense levels during 1996 due
primarily to higher levels of promotional allowance costs (relative to gaming
revenues) during 1996.  

     Food and beverage revenues increased approximately 2% in 1997, rising to
$17.8 million from $17.4 in 1996, due primarily to higher average tickets at
the Atlantis' food and beverage outlets.  Food and beverage operating expenses
during 1997 amounted to 54.3% of food and beverage revenues, compared to 55.8%
in 1996, with the improvement due to lower food costs and improved operating
efficiency.

     Hotel revenues increased 4% in 1997 compared to 1996, with a 7% increase
in the Atlantis' ADR more than offsetting a 2.8 point decline in the Atlantis'
average occupancy rate.  The Atlantis' ADR in 1997 was $53.50, compared to
$49.90 in 1996.  The average occupancy rate at Atlantis was 85.9% in 1997
compared to 88.7% in 1996.  During 1996, the Atlantis' hotel revenues were
adversely impacted by unusually severe price competition in the Reno area
lodging market, which the Company believes also negatively impacted the hotel
revenues of the Atlantis' primary competitors.  The Company believes that the
decline in the Atlantis' average occupancy in 1997 was partly due to the
approximately 26% increase in hotel room capacity added to the Reno market
during 1995 and 1996 which the Company believes has not yet been fully
absorbed, and partly due to a concerted effort by the Company to increase the
Atlantis' ADR.  Hotel operating expenses in 1997 equaled 36.4% of hotel
revenues, essentially unchanged from 36.6% in 1996.

     SG&A expenses amounted to 27.0% of net revenues in 1997, compared to 28.6%
in 1996.  The improvement primarily reflects the higher net revenues generated
in 1997, which more than offset the incremental increase in actual SG&A
outlays.  The Company's 1996 SG&A expenses were also adversely affected by name
change costs and increased marketing costs necessitated by the name change and
an intensified competitive environment.

     Interest expense declined by approximately 10% in 1997 compared to 1996,
falling to $3.3 million from $3.6 million.  The decrease reflects lower average
outstanding debt during 1997.

     In 1997, the Company incurred a non-cash extraordinary loss on the early
retirement of debt, net of an applicable income tax benefit, of $(185)
thousand, or $(.02) per share.  The extraordinary charge was incurred in the
1997 fourth quarter when the Company refinanced its long-term debt with a new
bank credit facility, resulting in the write-off of approximately $280 thousand
in unamortized loan origination costs.  In 1996, the Company recorded non-cash
fixed asset impairment loss charges totaling $(1.3) million, which were offset
by a minority interest in the net loss of a consolidated subsidiary of $206
thousand.  The impairment losses were recognized on a 


                                     -18- <PAGE>
marine vessel owned by a subsidiary of the Company, which the Company had
intended to use as a riverboat gaming vessel.  

OTHER FACTORS AFFECTING CURRENT AND FUTURE RESULTS

     In July 1998, the Company commenced construction of the Hotel Tower
Project, which will add 392 rooms, additional casino space and other amenities
to the Atlantis.  The Hotel Tower Project is expected to be completed in the
second quarter of 1999.  The Company carefully planned the Hotel Tower Project
to mitigate the disruptive effects of construction by redirecting traffic
flows, creating alternative access points at the Atlantis, and restricting
construction crews, materials and vehicles to specified areas.  Following the
very disruptive construction mobilization process in July 1998, the Company
believes these steps have been effective in reducing the disruptive effect of
the construction activities; however, the Company believes that some disruption
is occurring and will continue to occur until the project is completed.  

     With the Hotel Tower Project, the Company is subject to certain risks
typically associated with large-scale construction projects, including the
risks of delay, shortages of materials or skilled labor, unforeseen
engineering, environmental and/or geological problems, work stoppages, weather
interference and unanticipated cost increases.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has historically funded its daily hotel and casino activities
with net cash provided by operating activities.  For the years 1998, 1997, and
1996, net cash provided by operating activities totaled $8.6 million, $9.6
million, and $5.3 million, respectively.  During each of the three years, net
cash provided by operating activities was sufficient to fund the day to day
operating expenses of the Company.  

     Net cash used in investing activities, which consisted entirely of
acquisitions of property and equipment, totaled $26.1 million, $1.7 million,
and $1.5 million in 1998, 1997,and 1996, respectively.  Total capital
expenditures, including amounts financed, were $27.2 million, $2.3 million, and
$2.8 million in 1998, 1997, and 1996, respectively.  Capital expenditures
during 1998 primarily reflect construction costs associated with the Atlantis
Expansion, and the expenditures for 1997 and 1996 were primarily directed
toward ongoing refurbishments and enhancements to the Atlantis, including
equipment replacements.

     Net cash provided by financing activities in 1998 totaled $16.9 million,
as the Company borrowed funds under its bank credit facilities to finance the
construction of the Atlantis Expansion.  Net cash used in financing activities
in 1997 and 1996 totaled $6.3 million, and $3.5 million, respectively, with the
funds used primarily to reduce long-term debt.  The Company also used funds in
1997 and 1996 to repurchase its common stock on the open market.

     In 1998, the Company entered into two separate fixed price construction
contracts totaling approximately $39.5 million for the two major hard cost
components of the Atlantis Expansion, the Hotel Tower Project and the Skywalk. 
The Company anticipates that it will expend approximately $23.5 million for
Atlantis Expansion costs not included in the two fixed price construction
contracts, bringing the estimated total project cost to approximately $63
million.  The Company is funding the majority of these costs with available 

                                     -19- <PAGE>
borrowings under its $80 million Credit Facility (the principal terms of which
are summarized at Note 4 of the Notes to Consolidated Financial Statements -
see Item 8, "FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA, Notes to Consolidated
Financial Statements"), together with other available borrowing capacity and
cash flow from operations.  At December 31, 1998, the outstanding balance of
the Credit Facility was $50.3 million.

     In addition to the funding requirements associated with the Atlantis
Expansion, the Company continues to monitor expansion opportunities at its
other Reno site and elsewhere in Nevada and in other jurisdictions.  The
decision by the Company to proceed with any substantial project will require
the Company to secure adequate financing on acceptable terms.  No assurances
can be made that if such projects are pursued that adequate financing would be
available on acceptable terms, if at all.

     The Company believes that its existing cash balances, cash flow from
operations and borrowings allowed under the Credit Facility will provide the
Company with sufficient resources to complete the Atlantis Expansion, fund its
operations, meet its debt repayment obligations and fund its other capital
expenditure requirements; however, the Company's operations are subject to
financial, economic, competitive, regulatory, and other factors, many of which
are beyond its control.  If the Company is unable to generate sufficient cash
flow, it could be required to adopt one or more alternatives, such as reducing,
delaying or eliminating planned capital expenditures, selling assets,
restructuring debt or obtaining additional equity capital.

     On April 10, 1995, the Company announced that its Board of Directors
authorized the open market repurchase of up to 200,000 shares of the Company's
common stock.  As of March 19, 1999, the Company had repurchased 100,000 shares
on the open market at a total cost of approximately $330 thousand.  The Company
has funded the purchases made to date and intends to fund any future
repurchases from cash on hand.

YEAR 2000

     In conjunction with the Atlantis Expansion, the Company has begun
replacing most of the Atlantis' internal information systems (both hardware and
software) in order to provide the technology needed to support the property's
increased size and operating complexity.  All of the systems critical to the
operation of the Atlantis will be replaced and/or upgraded as part of the
Atlantis Expansion.  The process began in the fourth quarter of 1998 and is
expected to be substantially completed in the second quarter of 1999.  Although
the Company did not undertake this replacement process in response to concerns
regarding potential Year 2000 problems, most Year 2000 issues related to the
Atlantis' internal information systems will be resolved as a result.  All of
the hardware and software acquired or licensed as part of this replacement
process has been certified by the vendors to be Year 2000 compliant.

     The Company has begun, and is continuing to assess, potential issues
related to the Year 2000 other than those relating to the Company's internal
information systems, such as critical supplier readiness and potential problems
associated with embedded technologies, and will develop and implement plans to
correct any deficiencies identified.  

     The costs of addressing the Company's year 2000 issues have not been fully
determined, but are not currently expected to be material to the 

                                     -20- <PAGE>
Company's financial position.  Should the Company and/or its critical suppliers
fail to identify and/or correct material Year 2000 issues, such failure could
impact the Company's ability to operate as it did before the Year 2000, and
subsequently have a material impact on the Company's operating results or
financial position.  In such an event, the Company will address issues as they
arise and strive to minimize any impact on the Company's operations.



















































                                     -21- <PAGE>
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


              REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


BOARD OF DIRECTORS
MONARCH CASINO & RESORT, INC.


     We have audited the accompanying consolidated balance sheets of Monarch
Casino & Resort, Inc. as of December 31, 1998 and 1997, and the related
consolidated statements of income, stockholders' equity, and cash flows for
each of the three years in the period ended December 31, 1998.  These financial
statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial statements based on
our audits.

     We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Monarch Casino
& Resort, Inc. as of December 31, 1998 and 1997, and the consolidated results
of its operations and its consolidated cash flows for each of the three years
in the period ended December 31, 1998, in conformity with generally accepted
accounting principles.




/s/Grant Thornton LLP
Reno, Nevada
January 29, 1999

















                                     -22- <PAGE>
                        MONARCH CASINO & RESORT, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
                                                  Years ended December 31,          
                                         -------------------------------------------
                                              1998           1997            1996   
                                         ------------   ------------    ------------
<S>                                      <C>            <C>             <C>         
Revenues
  Casino................................ $ 40,716,535   $ 37,254,033    $ 31,836,177
  Food and beverage.....................   18,169,375     17,841,009      17,410,800
  Hotel.................................   10,948,283     10,199,911       9,811,353
  Other.................................    2,685,012      2,323,885       2,253,393
                                         ------------   ------------    ------------
     Gross revenues.....................   72,519,205     67,618,838      61,311,723
  Less promotional allowances...........  (10,008,673)    (8,504,072)     (7,675,567)
                                         ------------   ------------    ------------
     Net revenues.......................   62,510,532     59,114,766      53,636,156
                                         ------------   ------------    ------------
Operating expenses
  Casino................................   17,800,326     16,043,256      14,422,670
  Food and beverage.....................    9,850,599      9,682,253       9,714,389
  Hotel.................................    3,567,021      3,710,462       3,595,239
  Other.................................      479,560        430,471         394,256
  Selling, general and administrative...   17,337,640     15,964,188      15,318,911
  Depreciation and amortization.........    4,616,722      4,308,991       4,141,528
                                         ------------   ------------    ------------
     Total..............................   53,651,868     50,139,621      47,586,993
                                         ------------   ------------    ------------
     Income from operations.............    8,858,664      8,975,145       6,049,163
                                         ------------   ------------    ------------
Other income (expense)                                             
  Interest expense......................   (2,222,089)    (3,253,067)     (3,626,980)
  Impairment loss on fixed assets.......          -              -        (1,330,592)
  Disposal of fixed assets..............     (955,836)           -               -
  Minority interests in net loss of                                 
   consolidated subsidiaries............          -              -           206,456
                                         ------------   ------------    ------------
     Total..............................   (3,177,925)    (3,253,067)     (4,751,116)
                                         ------------   ------------    ------------
     Income before income 
      taxes and extraordinary item......    5,680,739      5,722,078       1,298,047
Provision for income taxes..............    1,920,957      2,011,930         468,179
                                         ------------   ------------    ------------
     Income before extraordinary item...    3,759,782      3,710,148         829,868
Extraordinary item - loss on 
 early retirement of debt, net
 of applicable income tax 
 benefit of $95,057.....................          -         (184,524)            -  
                                         ------------   ------------    ------------
     Net income......................... $  3,759,782   $  3,525,624    $    829,868
                                         ============   ============    ============

INCOME PER SHARE OF COMMON STOCK
  Income before extraordinary item
     Basic.............................. $       0.40   $       0.39    $       0.09
     Diluted............................ $       0.40   $       0.39    $       0.09
  Net income
     Basic.............................. $       0.40   $       0.37    $       0.09
     Diluted............................ $       0.40   $       0.37    $       0.09
  Weighted average number of 
   common shares and potential 
   common shares outstanding
     Basic..............................    9,436,275      9,444,333       9,501,658
     Diluted............................    9,502,327      9,479,359       9,501,658
</TABLE>

The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.

                                     -23- <PAGE>
                        MONARCH CASINO & RESORT, INC.
                         CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                        December 31, 
                                               ----------------------------
                                                    1998            1997
                                               ------------    ------------
<S>                                            <C>             <C>
ASSETS                                                                     
Current assets
  Cash........................................ $  4,950,244    $  5,527,839
  Receivables, net............................    1,274,343         837,420
  Inventories.................................      476,948         570,367
  Prepaid expenses............................    1,628,717       1,333,176
  Prepaid federal income tax..................      449,226             -  
  Deferred income taxes.......................      432,874       1,055,000
                                               ------------    ------------
     Total current assets.....................    9,212,352       9,323,802
                                               ------------    ------------
Property and equipment
  Land........................................   10,339,530      10,339,530
  Buildings...................................   35,335,973      36,273,298
  Furniture and equipment.....................   24,667,318      22,304,919
  Improvements................................    4,969,881       5,040,033
                                               ------------    ------------
                                                 75,312,702      73,957,780
  Less accumulated 
   depreciation and amortization..............  (22,125,039)    (17,868,111)
                                               ------------    ------------
                                                 53,187,663      56,089,669
  Construction in progress....................   25,393,665         682,047
                                               ------------    ------------
     Net property and equipment...............   78,581,328      56,771,716
                                               ------------    ------------
Other assets..................................    1,662,663       1,732,569
                                               ------------    ------------
                                               $ 89,456,343    $ 67,828,087
                                               ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Current maturities of long-term debt........ $    850,498    $  2,243,611
  Accounts payable............................    3,441,829       4,111,457
  Accrued expenses............................    4,152,237       3,383,855
  Federal income taxes payable................          -           240,970
                                               ------------    ------------
     Total current liabilities................    8,444,564       9,979,893

Long-term debt, less current maturities.......   52,309,785      32,907,530
Deferred income taxes.........................    2,248,548       2,247,000
Commitments and contingencies.................          -               -

Stockholders' equity
  Preferred stock, $.01 par value, 10,000,000
   shares authorized; none issued.............          -               -
  Common stock, $.01 par value, 30,000,000 
   shares authorized; 9,536,275 issued; 
   9,436,275 outstanding......................       95,363          95,363
  Additional paid-in capital..................   17,241,788      17,241,788
  Treasury stock..............................     (329,875)       (329,875)
  Retained earnings...........................    9,446,170       5,686,388
                                               ------------    ------------
     Total stockholders' equity...............   26,453,446      22,693,664
                                               ------------    ------------
                                               $ 89,456,343    $ 67,828,087
                                               ============    ============
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.

                                     -24- <PAGE>
                        MONARCH CASINO & RESORT, INC.         
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                               Common Stock    
                           --------------------  Additional   Retained
                             Shares               Paid-in     Earnings   Treasury 
                           Outstanding Amount     Capital     (Deficit)    Stock       Total    
                           ----------- -------- ------------ ----------- --------   ------------
<S>                          <C>       <C>      <C>          <C>         <C>        <C>
Balance, January 1, 1996     9,536,275 $ 95,363 $ 17,008,779 $ 1,330,896 $     -    $ 18,435,038
  Net income                       -        -            -       829,868       -         829,868
  Treasury stock acquired,
   at cost                     (83,000)     -            -           -    (264,000)     (264,000)
                           ----------- -------- ------------ ----------- ---------  ------------

Balance, December 31, 1996   9,453,275   95,363   17,008,779   2,160,764  (264,000)   19,000,906
  Net income                       -        -            -     3,525,624       -       3,525,624
  Treasury stock acquired,
   at cost                     (17,000)     -            -           -     (65,875)      (65,875)
  Other                            -        -        233,009         -         -         233,009
                           ----------- -------- ------------ ----------- ---------  ------------
Balance, December 31, 1997   9,436,275   95,363   17,241,788   5,686,388  (329,875)   22,693,664
  Net income                       -        -            -     3,759,782       -       3,759,782
                           ----------- -------- ------------ ----------- ---------  ------------
Balance, December 31, 1998   9,436,275 $ 95,363 $ 17,241,788 $ 9,446,170 $(329,875) $ 26,453,446
                           =========== ======== ============ =========== =========  ============
</TABLE>

The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.































                                     -25- <PAGE>
                        MONARCH CASINO & RESORT, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                         Years ended December 31,         
                                                ------------------------------------------
                                                     1998           1997           1996   
                                                ------------   ------------   ------------
<S>                                             <C>            <C>            <C>
Cash flows from operating activities:
  Net income................................... $  3,759,782   $  3,525,624   $    829,868
  Adjustments to reconcile net income to
   net cash provided by operating activities:
    Depreciation and amortization..............    4,616,722      4,308,991      4,141,528
    (Gain) loss on disposal of assets..........      955,836         (4,589)       (22,862)
    Impairment of assets.......................          -              -        1,330,592
    Increase in receivables, net...............     (436,923)      (318,205)       (15,932)
    (Increase) decrease in inventories.........       93,419       (208,174)       (46,637)
    (Increase) decrease in prepaid expenses....     (744,767)      (144,526)        26,196
    (Increase) decrease in 
      deferred income tax asset................      622,126        529,009       (514,000)
    (Increase) decrease in other assets........     (114,034)       394,241         63,649
    Increase (decrease) in accounts payable....     (669,628)       108,691       (763,703)
    Increase in accrued expenses...............      527,411        980,769        247,794
    Increase in deferred income tax liability..        1,548        420,000        240,000
    Decrease in minority interests.............          -              -         (206,456)
                                                ------------   ------------   ------------
     Net cash provided by 
      operating activities.....................    8,611,492      9,591,831      5,310,037
                                                ------------   ------------   ------------
Cash flows from investing activities:
  Proceeds from sale of assets.................        8,170        188,040        142,569
  Acquisition of property and equipment........  (26,145,670)    (1,933,080)    (1,593,865)
                                                ------------   ------------   ------------
     Net cash used in investing activities.....  (26,137,500)    (1,745,040)    (1,451,296)
                                                ------------   ------------   ------------
Cash flows from financing activities:
  Proceeds from long-term borrowings...........   21,385,843     32,810,000        500,000
  Principal payments on long-term debt.........   (4,437,430)   (39,085,029)    (3,717,152)
  Acquisition of treasury stock................          -          (65,875)      (264,000)
                                                ------------   ------------   ------------
     Net cash provided by 
     (used in) financing activities............   16,948,413     (6,340,904)    (3,481,152)
                                                ------------   ------------   ------------

     Net increase (decrease) in cash...........     (577,595)     1,505,887        377,589

Cash at beginning of period....................    5,527,839      4,021,952      3,644,363
                                                ------------   ------------   ------------
Cash at end of period.......................... $  4,950,244   $  5,527,839   $  4,021,952
                                                ============   ============   ============

Supplemental disclosure of 
 cash flow information:
  Cash paid for interest, net of
    capitalized interest....................... $  1,669,848   $  3,406,740   $  3,773,617
  Capitalized interest.........................      432,835            -              -
  Cash paid for income taxes...................    1,987,479        610,000        587,542

Supplemental schedule of non-cash 
 investing and financing activities:
  The Company financed the purchase of property
   and equipment in the following amounts......    1,060,730        336,926      1,243,878
  Capitalized loan costs included
   in accounts payable.........................          -        1,185,000            -  
</TABLE>

The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.


                                     -26- <PAGE>
                        MONARCH CASINO & RESORT, INC.
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                Years ended December 31, 1998, 1997, and 1996


NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING  POLICIES

Basis of Presentation

     Monarch Casino & Resort, Inc. ("Monarch") was incorporated in 1993. 
Golden Road Motor Inn, Inc. ("Golden Road") operates the Atlantis Casino Resort
(the "Atlantis") in Reno, Nevada.  Unless stated otherwise, the "Company"
refers collectively to Monarch, its wholly owned subsidiary Golden Road, and
majority owned subsidiaries, Dunes Marina Resort and Casino, Inc. ("Dunes
Marina"), formed in December 1993, and Sea World Processors, Inc. ("Sea
World"), purchased in February 1994. 

     The consolidated financial statements include the accounts of Monarch,
Golden Road, Dunes Marina and Sea World, and eliminate intercompany balances
and transactions.  

Use of Estimates

     In preparing these financial statements in conformity with generally
accepted accounting principles, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the year.  Actual results could
differ from those estimates.

Reclassifications

     Certain amounts in the 1997 and 1996 consolidated financial statements
have been reclassified to conform with the 1998 presentation.  These
reclassifications had no effect on the Company's net income.

Inventories

     Inventories, consisting primarily of food, beverages, and retail
merchandise, are stated at the lower of cost or market.  Cost is determined on
a first-in, first-out basis.

Property and Equipment

     Property and equipment are stated at cost, less accumulated depreciation
and amortization.  Since inception, property and equipment have been
depreciated principally on an accelerated basis over the estimated service
lives as follows:

     Buildings..........30-40 years
     Furniture..........5-10 years
     Equipment..........5-20 years
     Improvements.......15-40 years





                                     -27- <PAGE>
Casino Revenues

     Casino revenues represent the net win from gaming activity, which is the
difference between wins and losses.  Additionally, net win is reduced by a
provision for anticipated payouts on progressive jackpots.

Promotional Allowances

     The retail value of hotel, food and beverage services provided to
customers without charge is included in gross revenue and deducted as
promotional allowances.  The estimated departmental costs of providing such
promotional allowances are included in casino costs and expenses as follows:

<TABLE>
<CAPTION>
                                 Years ended December 31,       
                         ---------------------------------------
                             1998          1997          1996   
                         -----------   -----------   -----------
     <S>                 <C>           <C>           <C>
     Hotel.............. $ 1,129,300   $   401,000   $   476,000
     Food and beverage..   5,644,800     5,393,000     5,043,000
                         -----------   -----------   -----------
                         $ 6,774,100   $ 5,794,000   $ 5,519,000
                         ===========   ===========   ===========
</TABLE>

Advertising Costs

     All advertising costs are expensed as incurred.  Advertising expense was
$1,897,036, $1,940,628, and $1,558,895 for 1998, 1997, and 1996, respectively.

Income Taxes

     Income taxes are recorded in accordance with the liability method
specified by Statement of Financial Accounting Standards ("SFAS") No. 109. 
Under the asset and liability approach for financial accounting and reporting
for income taxes, the following basic principles are applied in accounting for
income taxes at the date of the financial statements: (a) a current liability
or asset is recognized for the estimated taxes payable or refundable on taxes
for the current year; (b) a deferred tax liability or asset is recognized for
the estimated future tax effects attributable to temporary differences and
carryforwards; (c) the measurement of current and deferred tax liabilities and
assets is based on the provisions of the enacted tax law; the effects of future
changes in tax laws or rates are not anticipated; and (d) the measurement of
deferred taxes is reduced, if necessary, by the amount of any tax benefits
that, based upon available evidence, are not expected to be realized.

Earnings Per Share

     In 1997 the Company adopted the provisions of SFAS No. 128, Earnings Per
Share.  Earnings per share for the year ended December 31, 1996 have been
restated to reflect the adoption of SFAS No. 128.  SFAS No. 128 requires
companies to present basic earnings per share, and, if applicable, diluted
earnings per share.  Basic earnings per share excludes dilution and is computed
by dividing net earnings available to common stockholders by the weighted
average number of common shares outstanding for the period.  Diluted 


                                     -28- <PAGE>
earnings per share reflects the potential dilution that could occur if options
to issue common stock were exercised into common stock.

     The following is a reconciliation of the number of shares (denominator)
used in the basic and diluted earnings per share computations (Shares in
thousands):

<TABLE>
<CAPTION>
                                               Years ended December 31,               
                                ------------------------------------------------------
                                      1998               1997               1996
                                ----------------   ----------------   ----------------
                                       Per Share          Per Share          Per Share
                                Shares   Amount    Shares   Amount    Shares   Amount
                                ------ ---------   ------ ---------   ------ ---------
<S>                              <C>      <C>       <C>      <C>       <C>      <C>
Income before 
 Extraordinary item
     Basic.....................  9,436    $0.40     9,444    $0.39     9,502    $0.09
     Effect of dilutive 
      stock options............     66      -          35      -         -        - 
                                ------ ---------   ------ ---------   ------ ---------
     Diluted...................  9,502    $0.40     9,479    $0.39     9,502    $0.09
                                ====== =========   ====== =========   ====== =========

Net Income
     Basic.....................  9,436    $0.40     9,444    $0.37     9,502    $0.09 
     Effect of dilutive 
      stock options............     66      -          35      -         -        -  
                                ------ ---------   ------ ---------   ------ ---------
     Diluted...................  9,502    $0.40     9,479    $0.37     9,502    $0.09
                                ====== =========   ====== =========   ====== =========
</TABLE>

     The following options were not included in the computation of diluted
earnings per share because the options' exercise price was greater than the
average market price of the common shares:

<TABLE>
<CAPTION>
                                      1998          1997          1996
                                  -----------   -----------   -----------
<S>                               <C>           <C>           <C>
Options to purchase shares of 
 common stock (in thousands).....      16            26            32    
Exercise prices.................. $5.88-$8.06   $4.88-$8.06   $3.50-$8.06
Expiration dates.................  6/99-5/08     9/98-6/00     9/98-6/00 
</TABLE>

Fair Value of Financial Instruments

     The following disclosure of the estimated fair value of financial
instruments is made in accordance with the requirements of SFAS No. 107
"Disclosures About Fair Value of Financial Instruments."  The estimated fair
value of the Company's financial instruments have been determined by the
Company, using available market information and valuation methodologies. 
However, considerable judgment is required to develop the estimates of fair
value; thus, the estimates provided herein are not necessarily indicative of
the amounts that the Company could realize in a current market exchange.

     The carrying amounts of cash, receivables, accounts payable and accrued
expenses, and current installments of long-term debt approximate fair value
because of the short-term nature of these instruments.

                                     -29- <PAGE>
     The fair value of long-term debt is estimated based on the current
borrowing rates offered to the Company for debt of the same remaining
maturities.

     It is estimated that the carrying amounts of all of the Company's
financial instruments approximate fair value at December 31, 1998.

Concentrations of Credit Risk

     Financial instruments which potentially subject the Company to
concentrations of credit risk consist principally of bank deposits and trade
receivables.  The Company maintains its cash in bank deposit accounts which, at
times, may exceed federally insured limits.  The Company has not experienced
any losses in such accounts.  Concentrations of credit risk with respect to
trade receivables are limited due to the large number of customers comprising
the Company's customer base.  The Company believes it is not exposed to any
significant credit risk on cash and accounts receivable.

NOTE 2.  ACCOUNTS RECEIVABLE

     Accounts receivable consist of the following:

<TABLE>
<CAPTION>
                                          December 31,       
                                   -------------------------
                                       1998          1997   
                                   -----------   -----------
     <S>                           <C>           <C>        
     Casino....................... $   975,726   $   644,426
     Hotel........................     322,002       260,300
     Other........................     142,193        83,419
                                   -----------   -----------
                                     1,439,921       988,145
     Less allowance for
      doubtful accounts...........    (165,578)     (150,725)
                                   -----------   -----------
                                   $ 1,274,343   $   837,420
                                   ===========   ===========
</TABLE>

     The following is a reconciliation of the allowance for doubtful accounts:

     Balance, December 31, 1996               $ 123,726
      Additions charged to income               201,343
      Accounts written off, less recoveries    (174,344)
                                              ---------
     Balance, December 31, 1997                 150,725
      Additions charged to income               194,853
      Accounts written off, less recoveries    (180,000)
                                              ---------
     Balance, December 31, 1998               $ 165,578
                                              =========

NOTE 3.  ACCRUED EXPENSES

     Accrued expenses consist of the following:




                                     -30- <PAGE>
<TABLE>
<CAPTION>
                                          December 31,       
                                   -------------------------
                                       1998          1997   
                                   -----------   -----------
     <S>                           <C>           <C>        
     Accrued salaries, wages
      and related benefits........ $ 1,506,699   $ 1,063,776
     Progressive slot machine
      and other gaming accruals...   1,175,361     1,426,365
     Accrued gaming taxes.........     174,508       101,133
     Accrued interest.............     559,084         6,843
     Other accrued liabilities....     736,585       785,738
                                   -----------   -----------
                                   $ 4,152,237   $ 3,383,855
                                   ===========   ===========
</TABLE>

NOTE 4.  LONG-TERM DEBT

     Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                           December 31,       
                                                                   ---------------------------
                                                                       1998           1997   
                                                                   ------------   ------------
     <S>                                                           <C>            <C>        
     Amounts outstanding under bank construction and reducing 
      revolving credit facility, collateralized by substantially 
      all property and equipment of Golden Road and guaranteed 
      by Monarch and its three largest stockholders, with 
      floating interest rates tied to a base rate approximately 
      equal to the prime rate or LIBOR (at the Company's option) 
      plus a margin which fluctuates according to the Company's 
      ratio of funded debt to EBITDA.  At December 31, 1998, 
      the Company's average interest rate was approximately 7.0%.
      The loan matures in June 2004, with all unpaid interest 
      and principal due and payable at that time.................. $ 50,328,451   $ 32,810,000
     Note payable to bank, collateralized by real property and
      guaranteed by Monarch and its three largest stockholders, 
      with floating interest rates equal to the three month 
      LIBO rate plus a margin which fluctuates according to
      the Company's ratio of funded debt to EBITDA.  At 
      December 31, 1998, the Company's interest rate was 
      Approximately 6.81%.  Interest and scheduled principal
      payments are payable quarterly until June, 2004,
      with all unpaid interest and principal due and payable
      at that time................................................    1,855,097            -
     Land purchase loan to seller, collateralized by real
      Property, with interest fixed at 6%.  Interest only
      payable monthly until September 1998, when all unpaid
      principal and interest is due...............................          -        1,897,597
     Amounts outstanding under bank credit facility, 
      collateralized by furniture, fixtures and equipment and 
      guaranteed in full by Monarch and in part by Monarch's 
      three largest stockholders, with interest rates on 
      advances fixed at a margin over five year U.S. Treasury 
      notes.  At December 31, 1998, the Company's average 
      interest rate was 6.8%.  Each advance under the credit 
      facility is repaid in 60 monthly installments of 
      principal and interest.  The Company may borrow up to 
      $4,500,000 on this credit facility through June 30, 1999....      339,795            -
     Slot purchase contracts, collateralized by equipment, 
      maturing in 1999............................................      515,736        215,668




                                     -31- <PAGE>
     Notes payable, collateralized by equipment, with 
      principal and interest due monthly through 2000.............      121,204        227,876
                                                                   ------------   ------------
                                                                   $ 53,160,263   $ 35,151,141
     Less current maturities......................................     (850,498)    (2,243,611)
                                                                   ------------   ------------
                                                                   $ 52,309,785   $ 32,907,530
                                                                   ============   ============
</TABLE>

     THE CREDIT FACILITY.  The Company has a $80 million construction and
reducing revolving bank credit facility (the "Credit Facility") with a
consortium of banks.  The Credit Facility is a direct obligation of Golden
Road, and is guaranteed by Monarch.  The Credit Facility is also guaranteed by
John Farahi, Co-Chairman of the Board, Chief Executive Officer and Chief
Operating Officer of Monarch and Golden Road and General Manager of the
Atlantis; Behrouz Ben Farahi, Co-Chairman of the Board, Chief Financial
Officer, Secretary and Treasurer of Monarch and Golden Road; and Bahram (Bob)
Farahi, Co-Chairman of the Board and President of Monarch and Golden Road,
individually.  

     The Company can borrow up to $80 million under the Credit Facility for
construction costs related to the Atlantis Expansion.  The Credit Facility may
be used only for construction of the Atlantis Expansion until the project is
completed, and during this period, draws under the Credit Facility are subject
to the satisfaction of various conditions typically applicable to construction
loans.  Following completion of the Atlantis Expansion, the Credit Facility
will convert from a construction loan to a reducing revolving term loan, and
the Company will be able to utilize proceeds from the Credit Facility for
working capital needs and general corporate purposes relating to the Atlantis
and for ongoing capital expenditure requirements at the Atlantis.

     At the Company's option, borrowings under the Credit Facility can accrue
interest at a rate designated by the agent bank as its base rate (the "Base
Rate") or at the London Interbank Offered Rate ("LIBOR") for one, two, three or
six month periods.  The rate of interest paid by the Company will include a
margin added to either the Base Rate or to LIBOR that is tied to the Company's
ratio of funded debt to EBITDA (the "Leverage Ratio").  Depending on the
Company's Leverage Ratio, this margin can vary between 0.00 percent and 2.00
percent above the Base Rate, and between 1.50 percent and 3.50 percent above
LIBOR.  At December 31, 1998, the applicable margin was the Base Rate plus
0.50%, and the applicable LIBOR margin was LIBOR plus 2.0%.  The Base Rate at
December 31, 1998 was 7.75%, and the one month LIBOR was approximately 5.1%. 
At December 31, 1998, the Company had Base Rate loans outstanding of
approximately $577 thousand and LIBOR loans outstanding of approximately $49.7
million.

     The maturity date of the Credit Facility is June 30, 2004.  Beginning July
1, 2000, the maximum principal available under the Credit Facility will reduce
quarterly from $80 million by an aggregate of $40 million in increasing
increments ranging from $1.5 million to $6 million.  The Company may prepay
borrowings under the Credit Facility without penalty (subject to certain
charges applicable to the prepayment of LIBOR borrowings prior to the end of
the applicable interest period) so long as the amount repaid is at least $200
thousand and a multiple of $10 thousand.  Following completion of the Atlantis
Expansion, amounts prepaid under the Credit Facility may be reborrowed so long
as the total borrowings outstanding do not exceed the maximum principal
available.  The Company may also permanently reduce the maximum principal 


                                     -32- <PAGE>
available under the Credit Facility at any time so long as the amount of such
reduction is at least $500 thousand and a multiple of $50 thousand.  

     The Credit Facility is secured by liens on substantially all of the real
and personal property of Golden Road, as well as by the aforementioned parent
and personal guarantees.  The Credit Facility contains covenants customary and
typical for a facility of this nature, including, but not limited to, covenants
requiring the preservation and maintenance of the Company's assets (including
provisions requiring that a minimum amount equal to two percent of the
Company's gaming revenues each year must be expended on capital expenditures at
the Atlantis), and covenants restricting the Company's ability to merge,
transfer ownership of Golden Road, incur additional indebtedness, encumber
assets, and make certain investments.  The Credit Facility also contains
covenants requiring the Company to maintain certain financial ratios, and
provisions restricting transfers between Golden Road and Monarch and between
Golden Road and other specified persons.  The Credit Facility also contains
provisions requiring the achievement of certain financial ratios before the
Company can repurchase its common stock or pay or declare dividends.

     Following completion of the Atlantis Expansion, the Credit Facility also
provides for certain swingline loans to the Company, generally to provide
short-term financing pending the funding of a draw by the lenders under the
Credit Facility.  Such swingline loans will accrue interest at the Base Rate in
the same manner as other borrowings under the Credit Facility.  

     The Company paid various fees and other loan costs upon the closing of the
Credit Facility that are being amortized over the term of the Credit Facility. 
Following completion of the Atlantis Expansion, the Company will be required to
pay a fee equal to three eighths of one percent per annum on the average unused
portion of the Credit Facility.  

     Annual maturities of long-term debt as of December 31, 1998, are as
follows:

<TABLE>
<CAPTION>
     Years ending 
     December 31,
     ------------
         <S>            <C>
         1999.......... $     850,498
         2000..........       248,909
         2001..........       471,726
         2002..........       476,476
         2003                 481,184
         Thereafter        50,631,470
                        -------------
                        $  53,160,263
                        =============
</TABLE>

NOTE 5.  INCOME TAX

     Income tax expense consists of the following:








                                     -33- <PAGE>
<TABLE>
<CAPTION>
                                                    Years ended December 31,       
                                            ---------------------------------------
                                                1998          1997          1996   
                                            -----------   -----------   -----------
     <S>                                    <C>           <C>           <C>
     Current expense....................... $ 1,297,283   $ 1,062,921   $   694,747
     Deferred expense (benefit)............     623,674       949,009      (226,568)
                                            -----------   -----------   -----------
                                            $ 1,920,957   $ 2,011,930   $   468,179
                                            ===========   ===========   ===========
</TABLE>

     The difference between the Company's provision for federal income taxes as
presented in the accompanying Consolidated Statements of Income, and the
provision for income taxes computed at the statutory rate is comprised of the
items shown in the following table as a percentage of pre-tax earnings.

<TABLE>
<CAPTION>
                                                    Years ended December 31,       
                                            ---------------------------------------
                                                1998          1997          1996   
                                            -----------   -----------   -----------
     <S>                                         <C>           <C>           <C>
     Income tax at the statutory rate......      34.0%         34.0%         34.0%
     Non-deductible expenses...............       1.7%          1.2%          3.1%
     Tax credits...........................      (1.2)%          -             -   
     Other, net............................      (0.7)%          -           (1.0)%
                                            -----------   -----------   -----------
                                                 33.8%         35.2%         36.1%
                                            ===========   ===========   ===========
</TABLE>

     The components of the deferred income tax assets and liabilities at
December 31, 1998 and 1997, as presented in the Consolidated Balance Sheets,
are as follows:

<TABLE>
<CAPTION>
                                                1998          1997   
                                            -----------   -----------
     <S>                                    <C>           <C>   
     CURRENT ASSETS
      Compensation and benefits............ $    88,319   $    73,000
      Bad debt reserves....................      56,297        51,000
      Accrued gaming liabilities...........      71,406       136,000
      Accrued other liabilities............         -          51,000
      Alternative minimum tax credit.......     216,852       506,000
      General business tax credit..........         -         238,000
                                            -----------   -----------
        Deferred income tax asset           $   432,874   $ 1,055,000
                                            ===========   ===========

     NONCURRENT LIABILITIES
      Impairment of assets.................     (70,195)      (70,000)
      Depreciation.........................  (1,900,810)   (1,899,000)
      Land basis...........................    (277,543)     (278,000)
                                            -----------   -----------
        Deferred income tax liability       $(2,248,548)  $(2,247,000)
                                            ===========   ===========
</TABLE>





                                     -34- <PAGE>
NOTE 6.  BENEFIT PLANS

     Self Insurance - The Company is self-insured for health care claims for
eligible active employees.  Benefit plan administrators assist the Company in
determining its liability for self-insured claims, and such claims are not
discounted.  The Company is also self-insured for workman's compensation.  Both
plans limit the Company's maximum liability under stop-loss agreements with
insurance companies.

     Savings Plan - Effective November 1, 1995, the Company adopted a savings
plan, which qualifies under Section 401(k) of the Internal Revenue Code.  Under
the plan, participating employees may defer up to 15% of their pre-tax
compensation, but not more than statutory limits.  The Company contributes
twenty five cents for each dollar contributed by a participant, with a maximum
contribution of 4% of a participant's compensation.  The Company's matching
contribution was approximately $19,300 in 1998 and $17,000 in 1997 and 1996.

     Stock Option Plans - The Company maintains three stock option plans,
consisting of the Directors' Stock Option Plan, the Executive Long Term
Incentive Plan, and the Employee Stock Option Plan, which collectively provide
for the granting of up to 425,000 common shares.  The exercise price of stock
options granted under the plans is established by the respective plan
committees, but the exercise price may not be less than the market price of the
Company's common stock on the date the option is granted.  Options expire five
to ten years from the grant date.  

     The Company has adopted the disclosure-only provisions of SFAS No. 123,
Accounting For Stock-Based Compensation, but applies Accounting Principles
Board Opinion No. 25 and related interpretations in accounting for its plans. 
If the Company had elected to recognize compensation cost on the fair market
value at the grant dates for awards under the stock option plans, consistent
with the method prescribed by SFAS No. 123, net income and income per share
would have been changed to the pro forma amounts indicated below:

<TABLE>
<CAPTION>
                                                       Years ended December 31,       
                                                ---------------------------------------
                                                   1998          1997          1996   
                                                -----------   -----------   -----------
     <S>                                        <C>           <C>           <C>
     Income before 
      extraordinary item        As reported     $ 3,759,782   $ 3,710,148   $   829,868
                                Pro forma         3,728,019     3,515,191       829,145

     Net income                 As reported       3,759,782     3,525,625       829,868
                                Pro forma         3,728,019     3,330,668       829,145

     Basic earnings per share 
      before extraordinary item As reported            0.40          0.39          0.09
                                Pro forma              0.40          0.37          0.09

     Basic earnings per share   As reported            0.40          0.37          0.09
                                Pro forma              0.40          0.35          0.09

     Diluted earnings per share
      before extraordinary item As reported            0.40          0.39          0.09
                                Pro forma              0.39          0.37          0.09

     Diluted earnings per share As reported            0.40          0.37          0.09
                                Pro forma              0.39          0.35          0.09
</TABLE>

                                     -35- <PAGE>
     The fair value of the Company's stock options was estimated as of the
grant date using the Black-Scholes option pricing model with the following
weighted average assumptions for 1998, 1997 and 1996:  dividend yield of 0.0%;
expected volatility of 60.0%, 35.0% and 55.0%, respectively; a weighted average
risk free interest rate of 4.90%, 6.61% and 6.25%, respectively; and an
expected holding period of three to seven years.  

     Presented below is a summary of the status of the Company's stock options
and the related transactions.

<TABLE>
<CAPTION>
                                                     Weighted Average
                                           Shares     Exercise Price
                                          --------   ----------------
     <S>                                   <C>            <C>
     Outstanding at December 31, 1995....   26,900        $ 7.02
      Granted............................    5,800          3.91
      Exercised..........................      -              -
      Forfeited/expired..................   (1,000)        (7.50)
                                           -------        
     Outstanding at December 31, 1996....   31,700          6.44
      Granted............................  233,700          3.21
      Exercised..........................      -              -
      Forfeited/expired..................   (2,500)        (2.88)
                                           -------       
     Outstanding at December 31, 1997....  262,900        $ 3.60
      Granted.......................        14,600          5.98
      Exercised.....................           -              -  
      Forfeited/expired.............       (25,300)        (6.27)
                                          --------       
     Outstanding at December 31, 1998..... 252,200        $ 3.47
                                          ========       

     Weighted average fair value of
      options granted during 1998.........  $ 2.18
                                          ========
                             1997.........  $ 1.28
                                          ========
                             1996.........  $ 0.26
                                          ========

</TABLE>

<TABLE>
<CAPTION>
                                   Stock Options Outstanding   Stock Options Exercisable
                                   -------------------------   -------------------------
                                      Weighted   Weighted                      Weighted
                                      Average    Average                       Average
        Range of                    Contractual  Exercise                      Exercise
     Exercise Prices    Shares         Life       Price           Shares        Price
     ----------------   -------      --------    ---------        -------       --------
     <S>                 <C>           <C>         <C>             <C>           <C>
     $2.25 to $3.50     162,400        6.67        $ 2.72          52,400        $ 2.37
     $4.00 to $5.00      60,600        1.60          4.50          59,600          4.49
     $5.75 to $8.13      17,000        5.13          6.28           9,800          6.46
                        -------                                   -------
          Total         240,000                                   121,800
                        =======                                   =======
</TABLE>

NOTE 7.  RELATED PARTY TRANSACTION

     The Company purchased water rights for the Atlantis Expansion during 1998
for $358,000 from a partnership in which three major stockholders of the
Company are general partners.  These stockholders are also directors of the 

                                     -36- <PAGE>
Company.  The water rights were purchased at the prevailing price at the time
of the transaction.

NOTE 8.  LEGAL PROCEEDINGS

     The Company is a defendant in various pending legal proceedings.  In the
opinion of management, all pending claims in such litigation will not, in the
aggregate, have a material adverse effect on the Company's financial position
or results of operations.

















































                                     -37- <PAGE>
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 
        ACCOUNTING AND FINANCIAL DISCLOSURE

     None.


                                   PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     This information is incorporated by reference to the Company's Proxy
Statement to be filed with the Commission in connection with the Annual Meeting
of Stockholders on June 9, 1999.

ITEM 11. EXECUTIVE COMPENSATION

     This information is incorporated by reference to the Company's Proxy
Statement to be filed with the Commission in connection with the Annual Meeting
of Stockholders on June 9, 1999.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     This information is incorporated by reference to the Company's Proxy
Statement to be filed with the Commission in connection with the Annual Meeting
of Stockholders on June 9, 1999.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     This information is incorporated by reference to the Company's Proxy
Statement to be filed with the Commission in connection with the Annual Meeting
of Stockholders on June 9, 1999.


                                   PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

     (a)  1. Financial Statements

             Included in Part II of this report:

             Consolidated Statements of Income for the years ended 
             December 31, 1998, 1997, and 1996.

             Consolidated Balance Sheets at December 31, 1998 and 1997.

             Consolidated Statements of Stockholders' Equity for the years 
             ended December 31, 1998, 1997 and 1996.

             Consolidated Statements of Cash Flows for the years ended 
             December 31, 1998, 1997 and 1996.

             Notes to Consolidated Financial Statements.

          2. Schedules are omitted because of the absence of conditions under 
             which they are required or because the required information is 
             provided in the financial statements or notes thereto.

                                     -38- <PAGE>
     (b)     Reports on Form 8-K

             The Company did not file any reports on Form 8-K during the 1998 
             fourth quarter.  

     (c)     Exhibits

     Number  Exhibit Description
     ------  -------------------

      3.01  Articles of Incorporation of Monarch Casino & Resort, Inc., filed 
            June 11, 1993 are incorporated herein by reference from the 
            Company's Form S-1 registration statement (SEC File 33-64556), 
            Part II, Item 16, Exhibit 3.01.

      3.02  Bylaws of Monarch Casino & Resort, Inc., adopted June 14, 1993 
            are incorporated herein by reference from the Company's Form S-1 
            registration statement (SEC File 33-64556), Part II, Item 16, 
            Exhibit 3.02.

      3.03  Articles of Incorporation of Golden Road Motor Inn, Inc. filed 
            March 6, 1973; Certificate Amending Articles of Incorporation of 
            Golden Road Motor Inn, Inc. filed August 29, 1973; and 
            Certificate of Amendment of Articles of Incorporation filed April 
            5, 1984 are incorporated herein by reference from the Company's 
            Form S-1 registration statement (SEC File 33-64556), Part II, 
            Item 16, Exhibit 3.03.

      3.04  Bylaws of Golden Road Motor Inn, Inc., adopted March 9, 1973 are 
            incorporated herein by reference from the Company's Form S-1 
            registration statement (SEC File 33-64556), Part II, Item 16, 
            Exhibit 3.04.

      4.01  Specimen Common Stock Certificate for the Common Stock of Monarch 
            Casino & Resort, Inc. is incorporated herein by reference from 
            the Company's Form S-1 registration statement (SEC File 33-
            64556), Part II, Item 16, Exhibit 4.01.

      4.02  Amended and Restated Monarch Casino & Resort, Inc. 1993 Directors' 
            Stock Option Plan.

      4.03  Amended and Restated Monarch Casino & Resort, Inc. 1993 Executive 
            Long Term Incentive Plan is incorporated herein by reference to 
            the Company's Form 10-K report (SEC File 0-22088) for the fiscal 
            year ended December 31, 1997, Item 14(c), Exhibit 4.03.

      4.04  Amended and Restated Monarch Casino & Resort, Inc. 1993 Employee 
            Stock Option Plan is incorporated herein by reference to the 
            Company's Form 10-K report (SEC File 0-22088) for the fiscal year 
            ended December 31, 1997, Item 14(c), Exhibit 4.04.

     10.01  Construction and Reducing Revolving Credit Agreement, dated as of 
            December 29, 1997, among Golden Road Motor Inn, Inc. as Borrower, 
            Monarch Casino & Resort, Inc., John Farahi, Bahram Farahi, and 
            Behrouz Farahi as guarantors, the Lenders as defined therein, and 
            Wells Fargo Bank as administrative and collateral Agent for the 
            Lenders and Swingline Lender is incorporated herein by reference 

                                     -39- <PAGE>
            to the Company's Form 8-K report (SEC File 0-22088) dated January 
            14, 1998, Exhibit 10.01.

     10.02  First Amendment to Construction and Reducing Revolving Credit 
            Agreement, dated as of January 9, 1998, among Golden Road Motor 
            Inn, Inc. as Borrower, Monarch Casino & Resort, Inc., John Farahi, 
            Bahram Farahi, and Behrouz Farahi as guarantors, the Lenders as 
            defined therein, and Wells Fargo Bank as administrative and 
            collateral Agent for the Lenders, Swingline Lender and L/C Issuer 
            is incorporated herein by reference to the Company's Form 10-K 
            report (SEC File 0-22088) for the fiscal year ended December 31, 
            1997, Item 14(c), Exhibit 10.02.

     10.03  Second Amendment to Construction and Reducing Revolving Credit 
            Agreement, dated as of June 12, 1998, among Golden Road Motor Inn, 
            Inc. as Borrower, Monarch Casino & Resort, Inc., John Farahi, 
            Bahram Farahi, and Behrouz Farahi as guarantors, the Lenders as 
            defined therein, and Wells Fargo Bank as administrative and 
            collateral Agent for the Lenders, Swingline Lender and L/C Issuer 
            is incorporated herein by reference to the Company's Form 10-Q 
            report (SEC File 0-22088) for the fiscal quarter ended June 30, 
            1998, Item 6(a), Exhibit 10.01.

     10.04  Term Loan Agreement, entered into as of the 23rd day of July, 
            1998, by and among Golden Road Motor Inn, Inc., as Borrower, 
            Monarch Casino & Resort, Inc., John Farahi, Bahram Farahi and 
            Behrouz Farahi as guarantors, and U.S. Bank National Association 
            as Term Lender is incorporated herein by reference to the 
            Company's Form 10-Q report (SEC File 0-22088) for the fiscal 
            quarter ended September 30, 1998, Item 6(a), Exhibit 10.01.

     10.05  Schedule to Master Loan Agreement, dated as of December 16, 1998; 
            Master Loan Agreement, dated as of October 3, 1998; and 
            Guaranties, dated as of September 9, 1998, by and among Golden 
            Road Motor Inn, Inc., as Borrower, Monarch Casino & Resort, Inc., 
            John Farahi, Bahram Farahi and Behrouz Farahi as guarantors, and 
            U.S. Bank Leasing and Financial as Lender.

     10.06  Agreement dated April 20, 1998, between Golden Road Motor Inn, 
            Inc. and Krump Construction, Inc. is incorporated herein by 
            reference to the Company's Form 10-Q report (SEC File 0-22088) for 
            the fiscal quarter ended March 31, 1998, Item 6(a), Exhibit 10.01.

     10.07  Agreement dated June 12, 1998, between Golden Road Motor Inn, Inc. 
            and Perini Building Company, Inc. is incorporated herein by 
            reference to the Company's Form 10-Q report (SEC File 0-22088) for 
            the fiscal quarter ended June 30, 1998, Item 6(a), Exhibit 10.02.

     10.08  Lease, by and between Sierra Development Company, dba Club Cal-
            Neva, Tenant, and Golden Road Motor Inn, Inc., dba Clarion Hotel 
            and Casino, Landlord, dated June 10, 1991 is incorporated herein 
            by reference from the Company's Form S-1 registration statement 
            (SEC File 33-64556), Part II, Item 16, Exhibit 10.03.

     10.09  Agreement for Purchase of Real Property between Marcelle M. 
            Caramella, a widow, individually and Marcelle Margaret Caramella, 
            as trustee of the Trust created under the Last Will and Testament 

                                     -40- <PAGE>
            of Ernest John Caramella, deceased, Ben A. Caramella and Cecile 
            D. Caramella, as trustees of the Caramella Family Trust Agreement 
            dated December 1, 1989, Marcelle Margaret Caramella, Erma V. 
            Pezzi, Trustee of the Erma V. Pezzi Trust Agreement dated 
            November 21, 1991, Golden Road Motor Inn, Inc. and Farahi 
            Investment Company, dated June 1, 1993 is incorporated herein by 
            reference from the Company's Form S-1 registration statement (SEC 
            File 33-64556), Part II, Item 16, Exhibit 10.04.

     10.10  Agreement between Monarch Casino & Resort, Inc. and Peter Wilday 
            dated May 13, 1994; First Amendment to Agreement between Monarch 
            Casino & Resort, Inc. and Peter Wilday dated June 8, 1994; and 
            Second Amendment to Agreement between Monarch Casino & Resort, 
            Inc. and Peter Wilday dated March 23, 1995 are incorporated 
            herein by reference from the Company's Form 10-K report (SEC File 
            0-22088) for the fiscal year ended December 31, 1994, Item 
            14(a)(3), Exhibit 10.20.

     10.11  Nonstandardized 401(k) Plan Adoption Agreement between Monarch 
            Casino & Resort, Inc. and Smith Barney Shearson dated November 7, 
            1995 is incorporated herein by reference to the Company's Form 
            10-K report (SEC File 0-22088) for the fiscal year ended December 
            31, 1995, Item 14(a)(3), Exhibit 10.21.

     10.12  Recordkeeping Service Agreement between Monarch Casino & Resort, 
            Inc. and Travelers Recordkeeping dated June 29, 1995 is 
            incorporated herein by reference to the Company's Form 10-K 
            report (SEC File 0-22088) for the fiscal year ended December 31, 
            1995, Item 14(a)(3), Exhibit 10.22.

     10.13  Trademark Agreement between Golden Road Motor Inn, Inc. and 
            Atlantis Lodge, Inc., dated February 3, 1996 is incorporated 
            herein by reference to the Company's Form 10-K report (SEC File 
            0-22088) for the fiscal year ended December 31, 1995, Item 
            14(a)(3), Exhibit 10.23.

     21.01  List of Subsidiaries of Monarch Casino & Resort, Inc. is 
            incorporated by reference from the Company's Form 10-K report 
            (SEC File 0-22088) for the fiscal year ended December 31, 1993, 
            Item 14(a)(3), Exhibit 21.01.

     27.01  Financial Data Schedule
















                                     -41- <PAGE>
                                  SIGNATURES

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




                                       MONARCH CASINO & RESORT, INC.
                                               (Registrant)         



<TABLE>
<S>                                    <C>
Date: March 30, 1999                   By: /s/ BEN FARAHI
                                       ------------------------------------
                                       Ben Farahi, Co-Chairman of the Board,
                                       Secretary, Treasurer and Chief
                                       Financial Officer(Principal Financial
                                       Officer and Duly Authorized Officer)
</TABLE>

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
     Signature          Title                                   Date
     ------------------ -----------------------------------     ----
     <S>                <C>                                     <C>
     /s/ JOHN FARAHI    Co-Chairman of the Board of Directors,  March 30, 1999
     ------------------ Chief Executive Officer (Principal 
     John Farahi        Executive Officer) and Director         
 
     /s/ BOB FARAHI     Co-Chairman of the Board of Directors,  March 30, 1999
     ------------------ President, and Director
     Bob Farahi

     /s/ BEN FARAHI     Co-Chairman of the Board of Directors,  March 30, 1999
     ------------------ Secretary, Treasurer, Chief Financial 
     Ben Farahi         Officer (Principal Financial Officer 
                        and Principal Accounting Officer) and 
                        Director

     /s/ CRAIG F. 
         SULLIVAN       Director                                March 30, 1999
     ------------------
     Craig F. Sullivan

     /s/FRANK A. MODICA Director                                March 30, 1999
     ------------------
     Frank A. Modica
</TABLE>


                                     -42- <PAGE>
                                EXHIBIT INDEX

<TABLE>
<CAPTION>

  Exhibit                                                                           Page
  Number     Description                                                            Number
-----------  ------------------------------------------------------------------     --------
      <S>   <C>                                                                       <C>

      3.01  Articles of Incorporation of Monarch Casino & Resort, Inc., filed 
            June 11, 1993 are incorporated herein by reference from the 
            Company's Form S-1 registration statement (SEC File 33-64556), 
            Part II, Item 16, Exhibit 3.01.

      3.02  Bylaws of Monarch Casino & Resort, Inc., adopted June 14, 1993 
            are incorporated herein by reference from the Company's Form S-1 
            registration statement (SEC File 33-64556), Part II, Item 16, 
            Exhibit 3.02.

      3.03  Articles of Incorporation of Golden Road Motor Inn, Inc. filed 
            March 6, 1973; Certificate Amending Articles of Incorporation of 
            Golden Road Motor Inn, Inc. filed August 29, 1973; and 
            Certificate of Amendment of Articles of Incorporation filed April 
            5, 1984 are incorporated herein by reference from the Company's 
            Form S-1 registration statement (SEC File 33-64556), Part II, 
            Item 16, Exhibit 3.03.

      3.04  Bylaws of Golden Road Motor Inn, Inc., adopted March 9, 1973 are 
            incorporated herein by reference from the Company's Form S-1 
            registration statement (SEC File 33-64556), Part II, Item 16, 
            Exhibit 3.04.

      4.01  Specimen Common Stock Certificate for the Common Stock of Monarch 
            Casino & Resort, Inc. is incorporated herein by reference from 
            the Company's Form S-1 registration statement (SEC File 33-
            64556), Part II, Item 16, Exhibit 4.01.

      4.02  Amended and Restated Monarch Casino & Resort, Inc. 1993 Directors'        46
            Stock Option Plan.

      4.03  Amended and Restated Monarch Casino & Resort, Inc. 1993 Executive 
            Long Term Incentive Plan is incorporated herein by reference to 
            the Company's Form 10-K report (SEC File 0-22088) for the fiscal 
            year ended December 31, 1997, Item 14(c), Exhibit 4.03.

      4.04  Amended and Restated Monarch Casino & Resort, Inc. 1993 Employee 
            Stock Option Plan is incorporated herein by reference to the 
            Company's Form 10-K report (SEC File 0-22088) for the fiscal year 
            ended December 31, 1997, Item 14(c), Exhibit 4.04.

     10.01  Construction and Reducing Revolving Credit Agreement, dated as of 
            December 29, 1997, among Golden Road Motor Inn, Inc. as Borrower, 
            Monarch Casino & Resort, Inc., John Farahi, Bahram Farahi, and 
            Behrouz Farahi as guarantors, the Lenders as defined therein, and 
            Wells Fargo Bank as administrative and collateral Agent for the 
            Lenders and Swingline Lender is incorporated herein by reference 
            to the Company's Form 8-K report (SEC File 0-22088) dated January 
            14, 1998, Exhibit 10.01.

     10.02  First Amendment to Construction and Reducing Revolving Credit 
            Agreement, dated as of January 9, 1998, among Golden Road Motor 
            Inn, Inc. as Borrower, Monarch Casino & Resort, Inc., John Farahi, 
            Bahram Farahi, and Behrouz Farahi as guarantors, the Lenders as 
            defined therein, and Wells Fargo Bank as administrative and 
            collateral Agent for the Lenders, Swingline Lender and L/C Issuer 
            is incorporated herein by reference to the Company's Form 10-K 
            report (SEC File 0-22088) for the fiscal year ended December 31, 
            1997, Item 14(c), Exhibit 10.02.



                                     -43- <PAGE>
     10.03  Second Amendment to Construction and Reducing Revolving Credit 
            Agreement, dated as of June 12, 1998, among Golden Road Motor Inn, 
            Inc. as Borrower, Monarch Casino & Resort, Inc., John Farahi, 
            Bahram Farahi, and Behrouz Farahi as guarantors, the Lenders as 
            defined therein, and Wells Fargo Bank as administrative and 
            collateral Agent for the Lenders, Swingline Lender and L/C Issuer 
            is incorporated herein by reference to the Company's Form 10-Q 
            report (SEC File 0-22088) for the fiscal quarter ended June 30, 
            1998, Item 6(a), Exhibit 10.01.

     10.04  Term Loan Agreement, entered into as of the 23rd day of July, 
            1998, by and among Golden Road Motor Inn, Inc., as Borrower, 
            Monarch Casino & Resort, Inc., John Farahi, Bahram Farahi and 
            Behrouz Farahi as guarantors, and U.S. Bank National Association 
            as Term Lender is incorporated herein by reference to the 
            Company's Form 10-Q report (SEC File 0-22088) for the fiscal 
            quarter ended September 30, 1998, Item 6(a), Exhibit 10.01.

     10.05  Schedule to Master Loan Agreement, dated as of December 16, 1998;         53
            Master Loan Agreement, dated as of October 3, 1998; and 
            Guaranties, dated as of September 9, 1998, by and among Golden 
            Road Motor Inn, Inc., as Borrower, Monarch Casino & Resort, Inc., 
            John Farahi, Bahram Farahi and Behrouz Farahi as guarantors, and 
            U.S. Bank Leasing and Financial as Lender.

     10.06  Agreement dated April 20, 1998, between Golden Road Motor Inn, 
            Inc. and Krump Construction, Inc. is incorporated herein by 
            reference to the Company's Form 10-Q report (SEC File 0-22088) for 
            the fiscal quarter ended March 31, 1998, Item 6(a), Exhibit 10.01.

     10.07  Agreement dated June 12, 1998, between Golden Road Motor Inn, Inc. 
            and Perini Building Company, Inc. is incorporated herein by 
            reference to the Company's Form 10-Q report (SEC File 0-22088) for 
            the fiscal quarter ended June 30, 1998, Item 6(a), Exhibit 10.02.

     10.08  Lease, by and between Sierra Development Company, dba Club Cal-
            Neva, Tenant, and Golden Road Motor Inn, Inc., dba Clarion Hotel 
            and Casino, Landlord, dated June 10, 1991 is incorporated herein 
            by reference from the Company's Form S-1 registration statement 
            (SEC File 33-64556), Part II, Item 16, Exhibit 10.03.

     10.09  Agreement for Purchase of Real Property between Marcelle M. 
            Caramella, a widow, individually and Marcelle Margaret Caramella, 
            as trustee of the Trust created under the Last Will and Testament 
            of Ernest John Caramella, deceased, Ben A. Caramella and Cecile 
            D. Caramella, as trustees of the Caramella Family Trust Agreement 
            dated December 1, 1989, Marcelle Margaret Caramella, Erma V. 
            Pezzi, Trustee of the Erma V. Pezzi Trust Agreement dated 
            November 21, 1991, Golden Road Motor Inn, Inc. and Farahi 
            Investment Company, dated June 1, 1993 is incorporated herein by 
            reference from the Company's Form S-1 registration statement (SEC 
            File 33-64556), Part II, Item 16, Exhibit 10.04.

     10.10  Agreement between Monarch Casino & Resort, Inc. and Peter Wilday 
            dated May 13, 1994; First Amendment to Agreement between Monarch 
            Casino & Resort, Inc. and Peter Wilday dated June 8, 1994; and 
            Second Amendment to Agreement between Monarch Casino & Resort, 
            Inc. and Peter Wilday dated March 23, 1995 are incorporated 
            herein by reference from the Company's Form 10-K report (SEC File 
            0-22088) for the fiscal year ended December 31, 1994, Item 
            14(a)(3), Exhibit 10.20.

     10.11  Nonstandardized 401(k) Plan Adoption Agreement between Monarch 
            Casino & Resort, Inc. and Smith Barney Shearson dated November 7, 
            1995 is incorporated herein by reference to the Company's Form 
            10-K report (SEC File 0-22088) for the fiscal year ended December 
            31, 1995, Item 14(a)(3), Exhibit 10.21.

     10.12  Recordkeeping Service Agreement between Monarch Casino & Resort, 
            Inc. and Travelers Recordkeeping dated June 29, 1995 is 
            incorporated herein by reference to the Company's Form 10-K 


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            report (SEC File 0-22088) for the fiscal year ended December 31, 
            1995, Item 14(a)(3), Exhibit 10.22.

     10.13  Trademark Agreement between Golden Road Motor Inn, Inc. and 
            Atlantis Lodge, Inc., dated February 3, 1996 is incorporated 
            herein by reference to the Company's Form 10-K report (SEC File 
            0-22088) for the fiscal year ended December 31, 1995, Item 
            14(a)(3), Exhibit 10.23.

     21.01  List of Subsidiaries of Monarch Casino & Resort, Inc. is 
            incorporated by reference from the Company's Form 10-K report 
            (SEC File 0-22088) for the fiscal year ended December 31, 1993, 
            Item 14(a)(3), Exhibit 21.01.

     27.01  Financial Data Schedule
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