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, 2004

                                      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. [ ]



     Indicate by check mark whether the Registrant is an accelerated filer (as
defined by rule 12b-2 of the Act).  YES [ ]  NO [X]


     The aggregate market value of voting and non-voting common equity held by
nonaffiliates as of June 30, 2004, based on the closing price as reported on
The Nasdaq Stock Market(SM) of $14.10 per share, was approximately
$60,511,884.


     As of March 8, 2005, Registrant had 9,409,558 shares of Common Stock
outstanding.


     DOCUMENTS INCORPORATED BY REFERENCE. None.

     Portions of the Proxy Statement for Registrant's 2005 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-



                                    PART I

ITEM 1. BUSINESS

     Monarch Casino & Resort, Inc. (the "Company" or "we"), through its
wholly-owned subsidiary, Golden Road Motor Inn, Inc. ("Golden Road"), owns and
operates the tropically-themed Atlantis Casino Resort, a hotel/casino facility
in Reno, Nevada (the "Atlantis").  Unless otherwise indicated, "Monarch" or
the "Company" refers to Monarch Casino & Resort, Inc. and its Golden Road
subsidiary.  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 all of the assets of the Atlantis.
Our principal executive offices are located at 1175 West Moana Lane, Suite
200, Reno, Nevada 89509, telephone (775) 825-3355.


AVAILABLE INFORMATION

     Our website address is www.monarchcasino.com.  We make available free of
charge on or through our Internet website our annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to
those reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended, as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the
Securities and Exchange Commission.


THE ATLANTIS CASINO RESORT

     Through our Golden Road subsidiary, we own and operate the tropically-
themed Atlantis Casino Resort, which is located approximately three miles
south of downtown in the generally more affluent and rapidly growing south
area of Reno, Nevada.  The Atlantis features approximately 51,000 square feet
of casino space interspersed with waterfalls, giant artificial palm trees,
thatched-roof huts, and other tropical decor; a hotel and a motor lodge with
975 guest rooms; nine food outlets; an enclosed pool with waterfall; an
outdoor pool; a health spa; two retail outlets offering clothing and
traditional gift shop merchandise; a full service salon for men and women; an
8,000 square-foot family entertainment center; and approximately 25,000 square
feet of banquet, convention and meeting room space.

     The Reno-Sparks Convention Center is located across the street from the
Atlantis, the only hotel-casino within easy walking distance.  The Reno-Sparks
Convention Center underwent a $105 million expansion and renovation completed
in late July 2002 that increased its exhibition, meeting room, ballroom, and
lobby space by more than 50%, from approximately 380,000 to approximately
570,000 square feet.


ATLANTIS CASINO

     The Atlantis casino offers approximately 1,450 slot and video poker
machines; approximately 38 table games, including blackjack, craps, roulette
and others; a sports book (which is operated by an unaffiliated party pursuant
to a lease arrangement with us); Keno; and a poker room.



                                 -3-



     The following table summarizes the components of our casino revenues for
the periods shown:

                                         Years ended December 31,
                                        --------------------------
                                         2004      2003      2002
                                        ------    ------    ------
Slot & video poker.....................  79.7%     78.2%     74.8%
Table games............................  17.5%     18.8%     22.5%
Keno, poker room and sports book rent..   2.8%      3.0%      2.7%

     The Atlantis offers what we believe are higher than average payout rates
on slot machines relative to other northern Nevada casinos and has adopted
liberal rules for its blackjack games, including the use of single decks of
cards at some tables and allowing players to "double down" on the first two
cards.  We seek to attract high-end players through high quality amenities and
services and by extension of gaming credit after a careful credit history
evaluation.

HOTEL AND MOTOR LODGE

     The Atlantis includes three contiguous high-rise hotel towers with 826
rooms and suites, and a low-rise motor lodge with another 149 rooms, for a
total of 975 guest rooms.  The first of the three hotel towers, which was
completed in April 1991, contains 160 rooms and suites in 13 stories, and
underwent a $2.8 million complete interior renovation completed early in the
third quarter of 2002.  The 19-story second hotel tower was completed in
September 1994 and underwent a $3.8 million complete interior renovation that
was completed in March 2004. As part of the renovation, certain suites were
expanded and, as a result, five regular hotel rooms were eliminated. The
second hotel tower now contains 278 rooms and suites from 283 rooms and suites
prior to the renovation.  The third tower was completed in June 1999 and
contains 388 rooms and suites in 28 stories.  The rooms on the top seven
floors in the newest tower are nearly 20% larger than the standard guest rooms
and offer private elevator access, upscale accommodations, and a private
concierge service.

     The Atlantis hotel rooms feature upbeat, colorful interior decorations
and furnishings consistent with the Atlantis' tropical theme, as well as nine-
foot ceilings (most standard hotel rooms have eight-foot ceilings), which
create an open and spacious feel.  The newest hotel tower features 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.  A full service salon (the "Salon at
Atlantis") overlooks the third floor sundeck and outdoor seasonal swimming
pool and offers products and treatments for hair, nails, skincare and body
services for both men and women.  A health spa is located adjacent to the
swimming areas.  The hotel also features glass elevators rising the full 19
and 28 stories, respectively, of the two taller hotel towers, providing
panoramic views of the Reno area and the Sierra Nevadas, a mountain range
separating Nevada from California.

     The 149-room motor lodge is a two-story structure located adjacent to the
hotel.  The motor lodge rooms, which are also decorated and furnished in a
manner consistent with the Atlantis' tropical theme, are smaller than the
tower hotel rooms and have standard eight-foot ceilings.  We believe the motor
lodge rooms appeal to value conscious travelers who still want to enjoy the
experience and amenities of a first-class hotel-casino resort.

                                 -4-



     The average occupancy rate and average daily room rate at the Atlantis
for the following periods were:

                                         Years ended December 31,
                                        --------------------------
                                         2004      2003      2002
                                        ------    ------    ------
Occupancy rate.........................  93.6%     92.3%     92.9%
Average daily room rate................ $64.16    $57.82    $55.29

     We continually monitor and adjust hotel room rates based upon demand and
other competitive factors.  Our Average Daily Room Rate ("ADR") has also been
impacted by rooms sold at discounted rates to select wholesale operators for
tour and travel packages.


RESTAURANTS AND DINING

     The Atlantis has seven restaurants, one snack bar, and one gourmet coffee
bar, as described below.

     - The 600-seat Toucan Charlie's Buffet & Grill, which offers a wide
       variety of standard hot food selections, salads and seafood; specialty
       substations featuring made-to-order items, such as Mongolian barbecue,
       fresh Southwest and Asian specialties, and meats roasted in wood-fired
       rotisserie ovens; and two salad stations
     - The 135-seat, aquatic-themed Atlantis Seafood Steakhouse gourmet
       restaurant
     - The 200-seat, upscale MonteVigna Italian Ristorante, featuring a
       centrally located wine cellar
     - The Oyster Bar restaurant in the Sky Terrace offering fresh seafood,
       soups and bisques made to order
     - The Sushi Bar, also in the Sky Terrace, offering a variety of fresh
       raw and cooked sushi specialties, including all-you-can-eat lunch and
       dinner menus.  Combined, the Oyster Bar and Sushi Bar can accommodate
       up to 120 guests
     - The 178-seat 24-hour Purple Parrot coffee shop
     - The 104-seat Cafe Alfresco restaurant serving pizzas prepared in a
       wood-fired, brick oven
     - A gourmet coffee bar, offering specialty coffee drinks and pastries and
       desserts made fresh daily in the Atlantis bakery
     - A snack bar and soda fountain serving ice cream and arcade-style
       refreshments


THE SKY TERRACE

     The Sky Terrace is a unique structure with a diamond-shaped, blue glass
body suspended approximately 55 feet above street level and spanning 160 feet
across South Virginia Street.  The Sky Terrace connects the Atlantis with
additional parking on a 16-acre site owned by us across South Virginia Street
from the Atlantis.  The structure rests at each end on two 100-foot tall
Grecian columns with no intermediate support pillars.  The tropically-themed
interior of the Sky Terrace contains the Oyster Bar, a video poker bar, banks
of slot machines, a lounge area with oversized leather sofas and chairs and,
since May 2003, a sushi bar.  The Sushi Bar replaced the coffee and pastry bar
that was previously located adjacent to the lounge area.

                                 -5-



     Operations at the Atlantis are conducted 24 hours a day, every day of the
year.  The Atlantis' business is moderately seasonal in nature, with higher
revenues during the summer months and lower revenues during the winter months.


ATLANTIS IMPROVEMENTS

     We have continuously invested in upgrading the Atlantis.  Our capital
expenditures at the Atlantis were $9.7 million in 2004, $8.4 million in 2003,
and $6.5 million in 2002.  A summary of capital expenditures for the last
three years is as follows (in millions):

<TABLE>
<CAPTION>
                                                       2004        2003        2002
                                                     --------    --------    --------
<C>                                                  <C>         <C>         <C>
Cash acquisitions of property and equipment...        $9.1        $8.0        $4.8
Property and equipment acquired through
 trade payables...............................          -           -          0.1
Financed purchases of property and equipment..         0.6         0.4         1.6
                                                     --------    --------    --------
Total capital expenditures....................        $9.7        $8.4        $6.5
</TABLE>

     During 2004, capital expenditures consisted primarily of renovations to
our second tower hotel rooms and suites, the installation of a new slot player
tracking system, $1.35 million in leased driveway improvements and continued
acquisitions of and upgrades to gaming equipment. During 2003, capital
expenditures consisted primarily of the construction and opening of the new
Sushi Bar and the Salon at Atlantis, renovations to the second hotel tower,
and continued acquisitions of and upgrades to gaming equipment.  During 2002,
capital expenditures consisted primarily of renovations to the first hotel
tower, renovations and upgrade to the hotel front desk and VIP services area,
a total renovation of the Cafe Alfresco, and continued acquisitions of and
upgrades to gaming equipment.

     In 2004, we constructed a new driveway that is being shared between the
Atlantis and the adjacent Sierra Marketplace Shopping Center (the "Shopping
Center") that is owned and controlled by affiliates of our controlling
stockholders.  A new traffic signal was erected at mid-block on South Virginia
Street, serving the new driveway.  As part of this project, we are leasing a
37,368 square-foot corner section of the Shopping Center for a minimum lease
term of 15 years at an annual rent of $300,000, subject to increase every 60
months based on the Consumer Price Index.  We also use part of the common area
of the Shopping Center and pay our proportional share of the common area
expense of the Shopping Center. We have the option to renew the lease for 3
five-year terms, and at the end of the extension period, we have the option to
purchase the leased section of the Shopping Center at a price to be determined
based on a MAI Appraisal.  We use the leased space for pedestrian and vehicle
access to the Atlantis, and we have use of a portion of the parking spaces at
the Shopping Center.  The total cost of the project was $2.0 million; we were
responsible for two thirds of the total cost, or $1.35 million. The project
was completed, the driveway was put into use and we began paying rent on
September 30, 2004 (see Part III - ITEM 13. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS incorporated herein by reference to the Company's Proxy Statement
to be filed with the Securities and Exchange Commission in connection with the
Annual Meeting of Stockholders to be held on May 26, 2005).  The cost of the
new driveway is being depreciated over the initial 15-year lease term; some
components of the new driveway are being depreciated over a shorter period of
time (see "Property and Equipment" in Notes to Consolidated Financial
Statements - Note 1. Summary of Significant Accounting Policies").

                                   -6-



We remain committed to implementing renovations and upgrades and will consider
all capital expenditure projects proposed by our executive officers and key
employees.


EXPANSION POTENTIAL

     Our expansion potential at the current site is twofold.  First, we could
expand our existing hotel and casino, thereby giving us more hotel rooms,
amenities and more room for additional slot machines.  Second, we could expand
by developing the 16-acre parcel that we own across the street from the
Atlantis.  This site is connected to the Atlantis by the Sky Terrace and is
currently used for parking and special events related to the Atlantis.  Our
16-acre parcel meets all current Reno zoning requirements in the event we
decide to build another resort casino or entertainment facility.  We currently
have no plans for the expansion or development of either site, but we
constantly monitor industry demands and prudent development opportunities for
our property.

     In 2003, we entered into an option agreement with an affiliate of our
controlling stockholders to purchase property in South Reno for development of
a new hotel casino.  This property is located approximately 3.5 miles south of
the Atlantis. Commencement of any development of the property will require
completion of property due diligence and receipt of numerous approvals,
including master plan changes and zoning changes, neither of which can be
assured.  Through the current property owner, we have filed an application
with the City of Reno for master plan change and zoning change for 13 acres of
the property. On January 20, 2005, the City of Reno Planning Commission
approved our application for master plan and zoning change on the property.
The Reno City Council and regional governing authorities must next approve the
application.

MARKETING STRATEGY

     Our revenues and operating income are principally dependent on the level
of gaming activity at the Atlantis casino.  Our predominant marketing goal is
to utilize all of the Atlantis facilities to generate additional casino play.
Our secondary goal is to maximize revenues from our hotel, restaurants,
cocktail lounges, convention and meeting rooms and other amenities.

     Our marketing efforts are directed toward three broad consumer groups:
Reno area residents, leisure travelers, and conventioneers.  We believe the
Atlantis' location outside the downtown area, near the airport and across the
street from the Reno-Sparks Convention Center makes the facility appealing to
all three groups.

     RENO AREA RESIDENTS. The Atlantis' proximity to rapidly growing,
generally more affluent, south Reno residential areas provides a significant
source of middle to upper-middle income gaming customers.  We market to Reno
area residents (referred to from time to time as "Locals") on the basis of the
Atlantis location and accessibility, convenient surface parking, gaming
values, ambiance, friendly efficient service, and quality and relative value
of its food and beverage offerings, entertainment, and promotions.

     We believe local gaming customers prefer slot and video poker machines to
table games, and prefer video poker machines to reel-spinning (or

                                   -7-



electronically simulated reel-spinning) slot machines.  Accordingly, the
Atlantis provides a diverse selection of video poker machines.  Moreover, we
believe that Reno area residents seek out and frequent casinos with higher
payout rates on slot and video poker machines and more liberal rules on table
games relative to other northern Nevada casinos.  We believe the Atlantis
offers higher than average payout rates on slot machines, and we have adopted
liberal rules for its blackjack games, including the use of single decks of
cards at some tables and allowing players to "double down" on the first two
cards.  We have also implemented "Club Paradise," a frequent player club, to
encourage Locals' repeat play at our casino.

     LEISURE TRAVELERS. Reno is a popular gaming and vacation destination that
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, Minneapolis, Dallas and Atlanta.  The principal segments of
Reno's leisure traveler market are independent travelers, package tour and
travel customers, and high-end players.  We attempt to maximize our gaming
revenues and hotel occupancy through a balanced marketing approach that
addresses each market segment.

     Independent travelers make reservations directly with hotels of their
choice or through independent travel agents.  We believe this market segment
is largely comprised of individuals who drive and, to a lesser extent, fly to
Reno from a specific region, primarily northern California and the Pacific
Northwest.  We strive to attract the middle to upper-middle income strata of
this consumer segment through advertising and direct marketing in select
regions.  This segment represents a significant portion of the Atlantis'
customers, especially those visiting on weekends.

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

     We welcome direct on-line reservations on the Atlantis' website
(http://www.atlantiscasino.com).  We are also featured on major package tour
and travel websites.

     We market to high-end players selectively through direct sales.  We
utilize complimentary rooms, food and beverage, special events and the
extension of gaming credit to attract high-end players.

     CONVENTIONEERS. Convention business, like package tour and travel,
generates mid-week customer visits and supplements occupancy during low-demand
periods.  Conventioneers also typically pay higher average room rates than
non-conventioneers.  We selectively seek convention and meeting groups that we
believe will materially enhance the Atlantis' occupancy and daily room rates,
as well as those we believe will be more likely to gamble.  As the only hotel-
casino within easy walking distance of the Reno-Sparks Convention Center, the
Atlantis is, in our view, uniquely positioned to capitalize on this expanding
segment.  We believe the $105 million expansion and remodeling of the Reno-
Sparks Convention Center, completed in late July 2002, has created and we
expect will continue to create additional customer traffic for the Atlantis
from a market segment that is presently underserved in the Reno area.

     We market to all customer segments, including conventioneers, on the
basis of the location, quality and ambiance of the Atlantis facility, gaming

                                   -8-



values, friendly efficient service, and the quality and relative value of its
rooms, food and beverage offerings, entertainment, and promotions.

     Our frequent player club, "Club Paradise," allows our customers to be
eligible to receive rewards and privileges based on the amount of their play,
while allowing us to track their play through a computerized system.  We use
this information to determine appropriate levels of complimentary awards, and
in our direct marketing efforts.  We believe that Club Paradise significantly
enhances our 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, 2004 Gaming Revenue Report
published by the Nevada State Gaming Control Board, there are approximately 12
casinos in the Reno area which generate more than $12.0 million each in annual
gaming revenues.

     We believe 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 that offer similar
amenities.  We compete for Locals primarily on the basis of the desirability
of our 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.  We believe
the Atlantis' proximity to residential areas in south Reno and its abundant
surface parking afford it an advantage over the casinos located in downtown
Reno in attracting Locals.

     We believe that the Atlantis' primary competition for leisure travelers
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.  We compete for leisure travelers on
the basis of the desirability of our 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.  We believe that our location away from
downtown Reno is appealing to many customers who prefer to avoid the more
congested downtown area; however, the Atlantis' location is a disadvantage in
that it does not afford us the ability to generate walk-in traffic (except
with respect to persons attending events at the Convention Center), which is a
significant source of customers for some casinos located in downtown Reno.

     We believe 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.  We compete for conventioneers based on the
desirability of our 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.  We believe that the Atlantis'
proximity to the Reno-Sparks Convention Center affords it a distinct
competitive advantage in attracting conventioneers.

                                   -9-



     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.  We believe 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 northern California and the Pacific Northwest.

     The constitutional amendment approved by California voters in 1999
allowing the expansion of Indian casinos in California has had an impact on
casino revenues in Nevada in general, and many analysts have continued to
predict the impact will be more significant on the Reno-Lake Tahoe market.
The extent of this continued impact is difficult to predict, but we believe
that the impact on us will continue to be mitigated to some extent due to the
Atlantis' emphasis on Reno area residents as a significant base of its
business, as well as its proximity to the Reno-Sparks Convention Center.
However, if other Reno area casinos continue to suffer business losses due to
increased pressure from California Indian casinos, they may intensify their
marketing efforts to Reno-area residents as well. However, we believe our
numerous amenities such as a wide array of restaurants, a video arcade,
banquet facilities and surface parking are a key factor in our ability to
attract Locals which competitor facilities will not easily be able to match
without major capital expenditures.

     Certain experienced Nevada gaming operators have agreements to build and
manage Indian casino facilities near San Francisco, one of Reno's key feeder
markets.  One major facility near Sacramento has been operating since June
2003 and has been very successful, adversely impacting many hotel casinos in
Reno. Once these facilities receive all the required permits and are built,
they could provide an alternative to Reno area casinos, especially during
certain winter periods when auto travel through the Sierra Nevadas is
hampered.

     We also believe that the legalization of unlimited land-based casino
gaming in or near any major metropolitan area in the Atlantis' key non-Reno
marketing areas, such as San Francisco or Sacramento, could have a material
adverse impact on our business.

     In June 2004, five California Indian tribes signed compacts with the
state that allows the tribes to increase the number of slot machines beyond
the previous 2,000-per-tribe limit in exchange for higher fees from each of
the five tribes.  The State of California hopes to sign similar compacts with
more Indian tribes.

     A developer has received approval for zoning change for a 7.7 acre parcel
of land within a quarter mile to the south of the Atlantis for development of
a gaming property.  Under certain "grandfathered" rights acquired by the
developer, such developer seeks to build a casino without a resort hotel as
would be required under state and local law without such grandfathered rights.
We believe that permitting such developer to build a casino without the resort
hotel amenities could have an adverse impact on our business and would be in
conflict with the land use laws in the area surrounding the Reno-Sparks
Convention Center which requires additional hotel rooms to support growth in
convention business. We are diligently monitoring developments in this
situation.

                                   -10-



REGULATION AND LICENSING

     The ownership and operation of casino gaming facilities in Nevada are
subject to the Nevada Gaming Control Act and the regulations promulgated
thereunder, referred to as the Nevada Act, and various local regulations.  Our
gaming operations are subject to the licensing and regulatory control of the
Nevada Gaming Commission, the Nevada State Gaming Control Board, and the Reno
City Council, 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 that are concerned
with, among other things:

     - the prevention of unsavory or unsuitable persons from having a direct
       or indirect involvement with gaming at any time or in any capacity;
     - the establishment and maintenance of responsible accounting practices
       and procedures;
     - 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;
     - the prevention of cheating and fraudulent practices; and
     - 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 our gaming operations.

     Golden Road, our subsidiary 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.  We are registered
by the Nevada Gaming Commission as a publicly traded corporation, or
Registered Corporation.  As such, we are required periodically to submit
detailed financial and operating reports to the Nevada Gaming Commission and
furnish any other information that the Nevada Gaming 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.  Golden Road and we 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, Golden Road or us in
order to determine whether that 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.  Our officers, directors and key employees 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 that 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.  Applicants for licensing or
a finding of suitability must pay all costs of the investigation.  Changes in


                                   -11-



licensed positions must be reported to the Nevada Gaming Authorities.  In
addition to their authority to deny an application for a finding of
suitability or licensure, the Nevada Gaming Authorities also 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 Golden Road or us, the companies involved would have to
sever all relationships with that person.  In addition, the Nevada Gaming
Commission may require us 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.

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

     If it were determined that we violated the Nevada Act, our gaming
licenses and registrations with the Nevada Gaming Commission could be limited,
conditioned, suspended or revoked, subject to compliance with certain
statutory and regulatory procedures.  In addition, we 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, the Nevada
Gaming Commission could appoint a supervisor to operate our gaming properties
and, under certain circumstances, earnings generated during the supervisor's
appointment (except for the reasonable rental value of our gaming properties)
could be forfeited to the State of Nevada.  The 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 our gaming
operations.

     Any beneficial holder of our 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 our voting securities
determined if the Nevada Gaming 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
our voting securities to report the acquisition to the Nevada Gaming
Commission.  The Nevada Act requires that beneficial owners of more than 10%
of our voting securities apply to the Nevada Gaming Commission for a finding
of suitability within 30 days after the Chairman of the Nevada Gaming Control
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 our voting securities
may apply to the Nevada Gaming Commission for a waiver of such finding of
suitability if the institutional investor holds the voting securities for
investment purposes only.  An institutional investor is not deemed to hold
voting securities for investment purposes unless they 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 our board of directors, any change in our corporate charter,
bylaws, management, policies or operations, or any of our gaming affiliates,

                                   -12-



or any other action that the Nevada Gaming Commission finds to be inconsistent
with holding our voting securities for investment purposes only.  Activities
that are not deemed to be inconsistent with holding voting securities for
investment purposes only include:

     - voting on all matters voted on by stockholders;
     - 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
     - such other activities as the Nevada Gaming 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 Gaming
Commission or the Chairman of the Nevada State Gaming Control 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 Gaming Commission may be guilty of
a criminal offense.  We are subject to disciplinary action if, after we
receive notice that a person is unsuitable to be a stockholder or to have any
other relationship with us, we:

     - pay that person any dividend or interest upon voting securities,
     - allow that person to exercise, directly or indirectly, any voting
       right conferred through securities held by that person,
     - pay remuneration in any form to that person for services rendered or
       otherwise, or
     - fail to pursue all lawful efforts to require such unsuitable person to
       relinquish his voting securities for cash at fair market value.

     The Nevada Gaming 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 Gaming 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 Gaming Commission, it:

     - pays to the unsuitable person any dividend, interest, or any
       distribution;
     - recognizes any voting right by such unsuitable person in connection
       with such securities;
     - pays the unsuitable person remuneration in any form; or
     - makes any payment to the unsuitable person by way of principal,
       redemption, conversion, exchange, liquidation or similar transaction.

     We are required to maintain a current stock ledger in Nevada and the
Nevada Gaming Authorities may examine the ledger at any time.  If any
securities are held in trust by an agent or a nominee, the record holder may
be required to disclose the identity of the beneficial owner to the Nevada

                                   -13-



Gaming Authorities.  A failure to make such disclosure may be grounds for
finding the record holder unsuitable.  We are also required to render maximum
assistance in determining the identity of the beneficial owner.  The Nevada
Gaming Commission has the power to require our stock certificates to bear a
legend indicating that the securities are subject to the Nevada Act.

     We may not make a public offering of our securities without the prior
approval of the Nevada Gaming 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 purposes
of constructing, acquiring or financing gaming facilities.  Any approval, if
granted, does not constitute a finding, recommendation or approval by the
Nevada Gaming Commission or the Nevada Gaming Control Board as to the accuracy
or adequacy of the prospectus or the investment merits of the securities
offered.  Any representation to the contrary is unlawful.

     Changes in our control through merger, consolidation, stock or asset
acquisitions, management or consulting agreements, or any act or conduct by a
person whereby that person obtains control (including foreclosure on the
pledged shares), may not occur without the prior approval of the Nevada Gaming
Commission.  Entities seeking to acquire control of a Registered Corporation
must satisfy the Nevada State Gaming Control Board and Nevada Gaming
Commission in a variety of stringent standards prior to assuming control of
such Registered Corporation.  The Nevada Gaming 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 Gaming 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:

     - assure the financial stability of corporate gaming operators and their
       affiliates;
     - preserve the beneficial aspects of conducting business in the
       corporate form; and
     - promote a neutral environment for the orderly governance of corporate
       affairs.

     We are, in certain circumstances, required to receive approval from the
Nevada Gaming Commission before we can make exceptional repurchases of voting
securities above their current market price and before we can consummate a
corporate acquisition opposed by management.  The Nevada Act also requires
prior approval of a plan of recapitalization proposed by our board of
directors in response to a tender offer made directly to a 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


                                   -14-



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:

     - a percentage of the gross revenues received;
     - the number of gaming devices operated; or
     - 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, referred to as
Licensees, and who is or proposes to become involved in a gaming venture
outside of Nevada is required to deposit with the Nevada State Gaming Control
Board, and thereafter maintain, a revolving fund in the amount of $10,000 to
pay the expenses of investigation by the Nevada State Gaming Control Board of
their participation in foreign gaming.  The revolving fund is subject to
increase or decrease in the discretion of the Nevada Gaming Commission.
Thereafter, Licensees are required to comply with certain reporting
requirements imposed by the Nevada Act.  Licensees are also subject to
disciplinary action by the Nevada Gaming Commission if they knowingly violate
any laws of the foreign jurisdiction pertaining to the foreign gaming
operation, fail to conduct the foreign gaming operation in accordance with the
standards of honesty and integrity required of Nevada gaming operations,
engage in activities that are harmful to the State of Nevada or its ability to
collect gaming taxes and fees, or employ 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 8, 2005, we had approximately 1,784 employees.  None of our
employees are covered by collective bargaining agreements.  We believe that
our relationship with our employees is good.


ITEM 2. PROPERTIES

     Our 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 is, in part or in whole, held subject to a
trust deed encumbrance in favor of financial institutions totaling
approximately $25.7 million as of March 8, 2005.

     (b)     An approximately 16-acre site adjacent to the Atlantis and
connected to the Atlantis by the Sky Terrace, which includes approximately 11
acres of paved parking used for customer, employee and valet parking.  The
remainder of the site is undeveloped.  This site is compliant with all casino
zoning requirements and is suitable and available for future expansion of the

                                   -15-



Atlantis facilities, parking, or complementary resort casino and/or
entertainment amenities.  We have not determined the ultimate use of this
site.  These 16 acres are also held subject to the trust deed encumbrance
described in ITEM 2 (a) above.

     (c)     A 37,368 square-foot leased land next door to the Atlantis
serving as a driveway entrance since September 30, 2004.

    (d)     A purchase option on a parcel of land in South Reno for
possible development of a new hotel casino. In 2003, we entered into an
option agreement with an affiliate of our controlling stockholders to purchase
the property in South Reno.  This property is located approximately 3.5 miles
south of the Atlantis. Commencement of any development of the property will
require completion of property due diligence and receipt of numerous
approvals, including master plan changes and zoning changes, neither of which
can be assured.  Through the current property owner, we have filed an
application with the City of Reno for master plan change and zoning change for
13 acres of the property. On January 20, 2005, the City of Reno Planning
Commission approved our application for master plan and zoning change on the
property. The Reno City Council and regional governing authorities must next
approve the application.


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 subsequently
were 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, NV et al., Case No. CV -S-95-936-LDG (RLH), in
which the Company is not a named defendant). The Plaintiffs moved to certify
two classes of plaintiffs, essentially encompassing all persons in the U.S.
who have played one or more of the defendants' video poker or electronic slot
machines in the prior ten years. That motion was opposed by the defendants and
subsequently, the court ruled in favor of the defendants and denied the class
certification motion.  That ruling was upheld on appeal.  As a result, the
named plaintiffs, Poulos, McElmore and Schreier must proceed on behalf of
themselves, not a class.  The plaintiffs have admitted that they, personally,
did not gamble in all of the establishments owned by entities named as
defendants in the suit, and have offered to dismiss those defendants

                                   -16-



associated with casinos at which they did not personally gamble.  Monarch is
included within the group of defendants to which dismissal has been offered.
Presently, Monarch is in the process of securing its dismissal with prejudice.
Monarch expects to obtain a final order of dismissal by mid 2005.  Monarch
does not expect any material costs and/or attorney's fees to be expended upon
this lawsuit through the dismissal process.

     We are party to other claims that arise in the normal course of business.
Management believes that the outcomes of such claims will not have a material
adverse impact on our financial condition or results of operations.


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

     There were no matters submitted to a vote of our security holders during
the fourth quarter of 2004.


                                   PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

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

                                    2004              2003
                              ----------------   ----------------
                               High      Low      High      Low
                              -------  -------   -------  -------
     First quarter........... $14.900  $10.750   $13.450  $ 7.710
     Second quarter.......... $15.750  $13.050   $ 9.540  $ 7.490
     Third quarter........... $19.340  $12.950   $11.310  $ 8.900
     Fourth quarter.......... $43.890  $18.820   $11.530  $ 9.380

     As of March 7, 2005, there were approximately 90 holders of record of our
common stock, and approximately 984 beneficial stockholders.

     We have never paid dividends.  We presently intend to retain earnings and
use free cash to finance our operating activities, for maintenance capital
expenditures and to reduce debt.  We do not anticipate declaring cash
dividends in the foreseeable future.  Our bank loan agreement also contains
provisions that require the achievement of certain financial ratios before we
can pay or declare dividends to our stockholders.  See Item 8, "FINANCIAL
STATEMENTS, Notes to Consolidated Financial Statements, Note 5."

     Securities Authorized for Issuance Under Equity Compensation Plans.  See
Part III, Item 12 - Security Ownership of Certain Beneficial Owners and
Management.

     (b)     Not applicable.

     (c)     On March 10, 2003, we announced a plan to repurchase up to
250,000 shares, or 2.6%, of our common stock in open market transactions.  The
repurchases may be made from time to time depending on market conditions and

                                   -17-



availability of funds.  The repurchases are to be made with our cash (see our
Current Report filed on Form 8-K dated March 10, 2003).  We did not purchase
any shares of our common stock pursuant to this stock repurchase program
during 2004.  During 2003, we purchased 180,000 shares of our common stock
pursuant to this stock repurchase program.  Our bank loan agreement requires
achievement of certain financial ratios before we can repurchase our common
stock.


ITEM 6. SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
                                                       Years ended December 31,
                                         ----------------------------------------------------
(In thousands except per share amounts)     2004       2003       2002       2001       2000
---------------------------------------------------------------------------------------------
<S>                                      <C>        <C>        <C>        <C>        <C>
OPERATING RESULTS
Casino revenues                          $ 84,132   $ 74,956   $ 70,773   $ 64,908   $ 59,373
Other revenues                             65,545     59,741     57,641     54,461     51,713
                                          -------    -------    -------    -------    -------
Gross revenues                            149,677    134,697    128,414    119,369    111,086
Promotional allowances                    (20,220)   (18,746)   (17,376)   (14,853)   (14,170)
                                          -------    -------    -------    -------    -------
Net revenues                              129,457    115,951    111,038    104,516     96,916
Income from operations                     26,274<F1> 17,209<F2> 17,196<F3> 14,132<F4>  9,550<F5>
Income before income tax                   24,689     14,572     13,033      6,888      1,386
Net income                               $ 16,526   $  9,606   $  8,603   $  4,602   $    960
                                          =======    =======    ========   =======    =======
----------------------------------------------------------------------------------------------
INCOME PER SHARE OF COMMON STOCK
Net income
     Basic                               $   1.76   $   1.02   $   0.91   $   0.49   $   0.10
     Diluted                             $   1.76   $   1.02   $   0.90   $   0.49   $   0.10
Weighted average number of common shares
 and potential common shares outstanding
     Basic                                  9,378      9,379      9,458      9,436      9,436
     Diluted                                9,407      9,412      9,521      9,480      9,477
----------------------------------------------------------------------------------------------
OTHER DATA
Depreciation and amortization            $  9,628   $ 10,797   $ 10,320   $ 10,085   $ 10,101
Interest expense, net                    $  1,584   $  2,638   $  3,934   $  7,243   $  8,165
Capital expenditures <F6>                $  9,710   $  8,406   $  6,534   $  4,488   $  3,866
----------------------------------------------------------------------------------------------
BALANCE SHEET DATA
Total assets                             $118,339   $115,877   $117,480   $121,064   $126,391
Current maturities of long-term debt     $     -    $  6,060   $  8,279   $  8,106   $  7,538
Long-term debt, less current maturities  $ 32,400   $ 41,125   $ 52,000   $ 64,237   $ 73,481
Stockholders' equity <F7>                $ 65,763   $ 48,723   $ 40,301   $ 31,430   $ 26,829

<FN>
<F1> 2004 includes a $173 thousand loss on disposal of fixed assets.
<F2> 2003 includes a $133 thousand gain on disposal of fixed assets.
<F3> 2002 includes a $35 thousand gain on disposal of fixed assets.
<F4> 2001 includes a $25 thousand gain on disposal of fixed assets.
<F5> 2000 includes a $139 thousand gain on disposal of fixed assets.
<F6> Includes amounts financed with debt or capitalized lease obligations.
<F7> We paid no dividends during the five year period ended December 31, 2004.
</FN>
</TABLE>







                                   -18-



ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS

     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, a hotel/casino facility in Reno, Nevada (the
"Atlantis"). 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 all of the assets of the Atlantis.

     Our sole operating asset, the Atlantis, is a hotel/casino resort located
in Reno, Nevada.  Our business strategy is to maximize the Atlantis' revenues,
operating income and cash flow primarily through our casino, our food and
beverage operations and our hotel operations.  We derive our revenues by
appealing to middle to upper-middle income Reno residents, emphasizing slot
machine play in our casino.  We capitalize on the Atlantis' location for
locals, tour and travel visitors and conventioneers by offering exceptional
service, value and an appealing theme to our guests.  Our hands-on management
style focuses on customer service and cost efficiencies.

     Unless otherwise indicated, "Monarch," "Company," "we," "our" and "us"
refer to Monarch Casino & Resort, Inc. and its Golden Road subsidiary.

OPERATING RESULTS SUMMARY

     During 2004, we exceeded all previously reported Company annual casino
revenues, hotel revenues, net revenues, net income and earnings per share.

<TABLE>
<CAPTION>

                                                                           Percentage
                                                                      Increase / (Decrease)
                                                                      ---------------------
                                           2004     2003     2002     04 vs 03     03 vs 02
                                          ------   ------   ------   ----------   ----------
<C>                                       <C>      <C>      <C>      <C>          <C>
(In millions, except earnings per share)

Casino revenues.........................  $ 84.1   $ 75.0   $ 70.8      12.2%        5.9%
Food and beverage revenues..............    37.3     34.5     33.6       8.2%        2.5%
Hotel revenues..........................    24.3     21.2     20.3      14.5%        4.6%
Other revenues..........................     3.9      4.0      3.7      (2.8)%       8.5%

Net revenues............................   129.5    116.0    111.0      11.6%        4.4%
Income from operations..................    26.3     17.2     17.2      52.7%        0.1%

Net income..............................    16.5      9.6      8.6      72.0%       11.7%

Earnings per share - diluted............    1.76     1.02     0.90      72.5%       13.3%

Operating margin........................   20.3%    14.8%    15.5%       5.5 pts    (0.7) pts
</TABLE>

     Net revenues in 2004 increased 11.6% over 2003 due to increases in our
top three revenue segments: casino, food and beverage and hotel revenues,
which increased 12.2%, 8.2% and 14.5%, respectively, over 2003. These
increases were partially offset by a 2.8% decrease in other revenues in 2004
compared to 2003.

     We attribute our improved results to our experienced management team, the
superb location of the Atlantis in the more affluent and growing south part of

                                   -19-



Reno, the quality of our product that drives repeat business, our focus on
marketing primarily to Reno-area residents, and our steadily declining
interest expense resulting from overall reductions in our outstanding debt
which were partially offset by slightly higher prevailing interest rates.

     In 2004, our income from operations increased 52.7% over 2003, while our
net income and earnings per diluted share increased 72.0% and 72.5%,
respectively.

     Some significant items that affected our 2004 results are listed below.
These items are discussed in greater detail elsewhere in our discussion of
operating results and in the Liquidity and Capital Resources section.

     - Gross revenues grew 11.1% in 2004 as compared to 2003 while promotional
       allowances increased only 7.9%.  This led to a net revenues increase
       of 11.6%.

     - Operating costs and expenses increased only 4.5% leading to improved
       margins in our casino, food and beverage and hotel revenue centers as
       well as a 67.1% flow through of incremental net revenue to income from
       operations.

     - Depreciation expense in 2004 decreased approximately $1.2 million, or
       10.8%, due to the fact that previously capitalized assets have become
       fully depreciated.

     - The increase in net revenues, together with the smaller increase in
       operating costs and expenses and the large decrease in depreciation
       expense translated into a 52.7% increase in income from operations.

     - Interest and stockholder guarantee fee expenses decreased 39.9%
       in 2004 compared to 2003 due to continuously decreasing outstanding
       debt and the elimination of stockholder guarantee fees from the
       refinancing of our credit facility in February 2004. These decreases
       were partially offset by slightly higher prevailing interest rates.

CAPITAL SPENDING AND DEVELOPMENT

     We seek to continuously upgrade and maintain the Atlantis in order to
present a fresh product to our guests and to maintain high quality standards.

     Capital expenditures at the Atlantis (including non-cash capital
expenditures) totaled approximately $9.7 million, $8.4 million and $6.5
million in 2004, 2003, and 2002, respectively.  Capital expenditures in 2004
consisted primarily of renovations to our second tower hotel rooms and suites,
the installation of a new slot player tracking system, $1.35 million in leased
driveway improvements and continued acquisitions of and upgrades to gaming
equipment. Capital expenditures in 2003 consisted primarily of the May 2003
opening of the Sushi Bar, the construction and November 2003 opening of the
Salon at Atlantis, November 2003 commencement of the second hotel tower room
upgrades and renovation, the acquisition of a new player tracking and slot
accounting system installed and operational by January 2004, continued slot
machine conversion to the ticket-in, ticket-out coinless slot system, and
continued acquisition of and upgrades to gaming equipment.  In 2002, capital
expenditures consisted primarily of renovations to Atlantis' first hotel
tower, renovations and upgrades to the hotel front desk and VIP services area,
a total renovation of the Cafe Alfresco, and continued acquisitions of and
upgrades to gaming equipment.


                                   -20-



     In 2004, a new driveway was constructed that is being shared between the
Atlantis and the adjacent Sierra Marketplace Shopping Center that is owned and
controlled by affiliates of our controlling stockholders (the "Shopping
Center").  A new traffic signal was erected at mid-block on South Virginia
Street, serving the new driveway.  As part of this project, we are leasing a
37,368 square-foot corner section of the Shopping Center for a minimum lease
term of 15 years at an annual rent of $300,000, subject to increase every 60
months based on the Consumer Price Index.  We are also using part of the
common area of the Shopping Center and pay our proportional share of the
common area expense of the Shopping Center. We have the option to renew the
lease for 3 five-year terms, and at the end of the extension period, we have
the option to purchase the leased section of the Shopping Center at a price to
be determined based on a MAI Appraisal.  We use the leased space for
pedestrian and vehicle access to the Atlantis, and we have use of a portion of
the parking spaces at the Shopping Center.  The total cost of the project was
$2.0 million; we were responsible for two thirds of the total cost, or $1.35
million.  This project was completed, the driveway was put into use and we
began paying rent on September 30, 2004 (see Part III - ITEM 13. CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS incorporated herein by reference to the
Company's Proxy Statement to be filed with the Securities and Exchange
Commission in connection with the Annual Meeting of Stockholders to be held on
May 26, 2005). The cost of the new driveway is being depreciated over the
initial 15-year lease term; some components of the new driveway are being
depreciated over a shorter period of time (see "Property and Equipment" in
Notes to Consolidated Financial Statements - Note 1. Summary of Significant
Accounting Policies").

     Future cash needed to finance ongoing capital expenditures is expected to
be made available from operating cash flow, the Credit Facility (see Item 8,
"FINANCIAL STATEMENTS, Notes to Consolidated Financial Statements, Note 5.")
and, if necessary, additional borrowings.


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, expansion of Indian casinos in California, 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 including those affected by
the events of September 11, 2001 and the ongoing situation in Iraq, and
changes in federal or state tax laws or the administration of such laws.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

     We prepare our consolidated financial statements in conformity with
principles generally accepted in the United States.  Certain of our policies,
including the estimated lives assigned to our assets, the determination of bad
debt, self insurance reserves, credit risk, and the calculation of income tax

                                   -21-



liabilities, require that we apply significant judgment in defining the
appropriate assumptions for calculating financial estimates.  By their nature,
these judgments are subject to an inherent degree of uncertainty.  Our
judgments are based on historical experience, terms of existing contracts,
observations of trends in the industry, information provided by customers and
information available from other outside sources, as appropriate.  There can
be no assurance that actual results will not differ from our estimates.  To
provide an understanding of the methodologies applied, our significant
accounting policies are discussed where appropriate in this discussion and
analysis and in the Notes to Consolidated Financial Statements.

     The consolidated financial statements include the accounts of Monarch and
Golden Road.  Intercompany balances and transactions are eliminated.

Self-insurance Reserves

     The Company reviews self-insurance reserves at least quarterly. The
amount of reserve is determined by reviewing the actual expenditures for the
previous twelve-month period and reviewing reports prepared by the third party
plan administrator for any significant unpaid claims.  The reserve is accrued
at an amount that approximates amounts needed to pay both reported and
unreported claims as of the balance sheet date, which management believes are
adequate.

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.

Advertising Costs

     All advertising costs are expensed as incurred.

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 a straight line basis over the estimated service
lives as follows:

     Land improvements ........... 15-40 years
     Buildings ................... 30-40 years
     Building improvements ....... 15-40 years
     Furniture ...................  5-10 years
     Equipment ...................  5-20 years

     Expenditures for maintenance and repairs are expensed as incurred;
expenditures for renewals and improvements are generally capitalized.

     We periodically evaluate our fixed and other long-term assets for
impairment to ensure that they are appropriately valued.

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 slot participation fees, progressive
jackpots and any pre-arranged marker discounts.

                                   -22-



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.

Income Taxes

     Income taxes are recorded in accordance with the liability method
specified by Statement of Financial Accounting Standards ("SFAS") No. 109
"Accounting for Income Taxes."  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 income 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 income taxes
is reduced, if necessary, by the amount of any tax benefits that, based upon
available evidence, are not expected to be realized.

Concentrations of Credit Risk

     Financial instruments which potentially subject us to concentrations of
credit risk consist principally of bank deposits and trade receivables.  We
maintain our cash in bank deposit accounts which, at times, may exceed
federally insured limits.  We have 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 our customer base.  We
believe we are not exposed to any significant credit risk on cash and accounts
receivable.

Stockholder Guarantee Fees

     All of our bank debt was personally guaranteed by our three largest
stockholders since the inception of our original loan agreement on December
29, 1997. Effective January 1, 2001, until February 20, 2004, we compensated
the guarantors at the rate of 2% per annum of the quarterly average
outstanding bank debt amount.  For the twelve months ended December 31, 2004,
2003, and 2002, we recorded interest expense in the amounts of approximately
$136,000, $1.0 million, and $1.3 million, respectively, for these guarantee
fees.  The individuals who guaranteed the Original Credit Facility were not
required to do so for the New Credit Facility (as defined below).  Therefore,
we will no longer incur such guarantee fee expenses.

DISCUSSION OF RESULTS OF OPERATIONS

2004 Compared with 2003

     For the year ended December 31, 2004, we earned net income of $16.5
million, or $1.76 per diluted share, on net revenues of $129.5 million,
compared to a net income of $9.6 million, or $1.02 per diluted share, on net
revenues of $116.0 million for the year ended December 31, 2003.  Our net



                                   -23-



revenues for 2004 are the highest in our Company's history. Our income from
operations totaled $26.3 million for 2004, a 52.7% increase when compared to
$17.2 million for 2003. Net income for the year 2004 constitutes a record high
for our Company. We believe the Atlantis continued to benefit in 2004 from the
rapid growth occurring in the residential and commercial areas south of the
Atlantis in Reno, and from the increasing popularity of the Atlantis with
visitors to the Reno area.

     Casino revenues totaled $84.1 million in 2004, up 12.2% from $75.0
million in 2003, driven by increases in slot, table game and poker game win.
Revenue from slot and video poker machines ("slot machines") increased
approximately 14.4% in 2004 compared to 2003. We believe that increased slot
machine play was due to continued effective marketing and continuous upgrade
of facilities and equipment in 2004 and 2003.  Table game win increased
approximately 4.2% in 2004 compared to 2003 due to a slight increase in drop
and improved win percentages.  Keno and poker room revenues combined increased
approximately 7.8% in 2004 over 2003. Keno write increased approximately 7.6%
in 2004 compared to 2003 while poker revenue increased approximately 31.4%
compared to 2003 due to continued effective marketing. Casino operating
expenses were 36.3% of casino revenues in 2004, an improvement from 39.1% in
2003. The improved casino margin in 2004 over 2003 was due to improved win
percentages, reduced payroll and benefit costs and more efficient operations.

     Food and beverage revenues increased 8.2% to $37.3 million in 2004 from
$34.5 million in 2003, primarily due to a 4.0% increase in average revenue per
cover combined with a 4.6% increase in the number of covers served.  Food and
beverage operating expenses decreased to 50.5% of food and beverage revenues
in 2004 compared to 51.3% in 2003, due to increased revenue per cover,
increased number of covers served and more efficient operations which were
partially offset by a slight increase in cost of sales.

     Hotel revenues totaled $24.3 million in 2004, an increase of 14.5% from
$21.2 million in 2003. The increase reflects an increase in both the average
daily occupied room rate and the occupancy rate during the twelve month period
of 2004 compared to the same period in 2003. Year 2004 revenues also include a
$3.00 per occupied room energy surcharge that was also assessed during 2003.
The Atlantis' average daily room rate ("ADR") was $64.16 in 2004, compared to
$57.82 in 2003.  The average occupancy rate at the Atlantis was 93.6% in 2004
compared to 92.3% in 2003.  Hotel operating expenses decreased slightly to
32.3% of hotel revenues in 2004, compared to 32.9% in 2003.  This decrease in
operating expenses as a percentage of hotel revenues resulted primarily from
increased average daily room rate.

     Promotional allowances increased to $20.2 million, or 13.5% of gross
revenues, in 2004 compared to $18.7 million, or 13.9% of gross revenues, in
2003.  The dollar increase is attributable to continued efforts to generate
additional revenues.  The decrease in percentage of promotional allowance to
gross revenues reflects efforts to ensure that promotional costs are directed
toward gaming guests.

     Other revenues decreased approximately 2.8% in 2004 to $3.9 million from
$4.0 million in 2003, which is directly the result of the approximately
$173,000 loss on disposal of assets.  The 2.8% overall decrease also includes
a 7.2% decrease in entertainment fun center revenue which is partially offset
by a 10.5% increase in gift and sundries retail shops revenue.  Other expenses
were approximately 34.5% of other revenues in 2004, an increase from 31.7% in
2003.

                                   -24-



     Selling, general and administrative ("SG&A") expenses totaled $35.0
million, or 27.0% of net revenues, in 2004 compared to $32.7 million, or 28.2%
of net revenues, in 2003.  The decrease in these expenses as a percentage of
revenues reflects management's efforts to control expenses as revenues
increase.

     Depreciation and amortization expense was $9.6 million in 2004, a
decrease of 10.8% from $10.8 million in 2003. The decrease is due to the fact
that previously capitalized assets have become fully depreciated.

     Interest and stockholder guarantee fee expenses for 2004 totaled
approximately $1.6 million, down 39.9% from $2.6 million in 2003, due to lower
outstanding debt which was partially offset by slightly higher prevailing
interest rates. Guarantee fees paid to our three principal stockholders
totaled approximately $136,000 in 2004 and $1.0 million in 2003.  The
individuals who guaranteed the Company's Original Credit Facility (defined in
"The Credit Facility" below) did not provide such guarantees for the New
Credit Facility (also defined in "The Credit Facility" below) and, therefore,
the Company will no longer be required to pay such fees in the future.  At
December 31, 2004, all of our interest-bearing debt was related to a reducing
revolving credit facility with floating interest rates tied to a base rate
approximately equal to the prime rate or LIBOR (at our option) plus a margin
which fluctuates according to our ratio of funded debt to Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA")(See Item 8,
"FINANCIAL STATEMENTS, Notes to Consolidated Financial Statements, Note 5.").
An increase in interest rates could have a material effect on our financial
results.

2003 Compared with 2002

     For the year ended December 31, 2003, we earned net income of $9.6
million, or $1.02 per diluted share, on net revenues of $116.0 million,
compared to a net income of $8.6 million, or $0.90 per diluted share, on net
revenues of $111.0 million for the year ended December 31, 2002.  Our income
from operations totaled $17.2 million for 2003, relatively unchanged when
compared to $17.2 million for 2002. Interest and stockholder guarantee fee
expenses declined 33.0% from 2002, and was a major factor in the increase in
net income. We believe the Atlantis continued to benefit in 2003 from the
rapid growth occurring in the residential and commercial areas south of the
Atlantis in Reno, and from the increasing popularity of the Atlantis with
visitors to the Reno area.

     Casino revenues totaled $75.0 million in 2003, up 5.9% from $70.8 million
in 2002, driven by increases in slot, Keno and poker game win.  Revenue from
slot and video poker machines ("slot machines") increased approximately 10.7%
in 2003 compared to 2002. We believe that increased slot machine play was due
to more effective marketing and continued upgrade of facilities and equipment
in 2003 and 2002.  Despite an approximate 6.5% increase in table game drop,
table game win decreased approximately 11.3% in 2003 compared to 2002 due to
higher than normal winnings by our guests during 2003.  Keno and poker room
revenues combined increased approximately 16.7% in 2003 over 2002. Keno write
increased approximately 4.7% in 2003 compared to 2002 while poker revenue
increased approximately 19.9% compared to 2002 due to more effective
marketing. Casino operating expenses were 39.1% of casino revenues in 2003,
unchanged when compared to 2002.



                                   -25-



     Food and beverage revenues increased 2.5% to $34.5 million in 2003 from
$33.6 million in 2002, primarily due to a 0.8% increase in average revenue per
cover combined with a 3.1% increase in the number of covers served.  Food and
beverage operating expenses decreased to 51.3% of food and beverage revenues
in 2003 compared to 52.3% in 2002, due to increased revenue per cover and more
efficient operations which were partially offset by a slight increase in cost
of sales.

     Hotel revenues totaled $21.2 million in 2003, an increase of 4.6% from
$20.3 million in 2002. The increase reflects an increase in average daily
occupied room rate partially offset by a slight decrease in occupancy rate
during the twelve month period of 2003 compared to the same period in 2002.
Year 2003 revenues also include a $3.00 per occupied room energy surcharge
that was also assessed during 2002.  The Atlantis' average daily room rate
("ADR") was $57.82 in 2003, compared to $55.29 in 2002.  The average occupancy
rate at the Atlantis was 92.3% in 2003 compared to 92.9% in 2002.  Hotel
operating expenses increased slightly to 32.9% of hotel revenues in 2003,
compared to 32.2% in 2002.  This increase in operating expenses as a
percentage of hotel revenues resulted primarily from increased employee
healthcare costs.

     Promotional allowances increased to $18.7 million, or 13.9% of gross
revenues, in 2003 compared to $17.4 million, or 13.5% of gross revenues, in
2002.  The increase is attributable to expanded promotional efforts to
increase revenues.

     Other revenues increased approximately 8.5% in 2003 to $4.0 million from
$3.7 million in 2002, reflecting an increase in sales from both retail gift
shops and a slight increase in revenue from the entertainment fun center.
Other expenses were approximately 31.7% of other revenues in 2003, an
improvement from 34.0% in 2002, primarily due to continued operating
efficiencies of operating the two gift shops and the entertainment fun center.

     Selling, general and administrative ("SG&A") expenses totaled $32.7
million, or 28.2% of net revenues, in 2003 compared to $30.4 million, or 27.4%
of net revenues, in 2002.  The increase in these expenses as a percentage of
revenues reflects increased energy costs, increased marketing and promotional
costs and increased employee healthcare costs. Selling, general and
administrative expenses for 2003 also included costs incurred as a result of
the litigation settled in early 2004 against the City of Reno and other third
parties.  These litigation costs were not incurred in 2002.

     Depreciation and amortization expense was $10.8 million in 2003, an
increase of 4.6% from $10.3 million in 2002.

     Interest and stockholder guarantee fee expenses for 2003 totaled
approximately $2.6 million, down 33.0% from $3.9 million in 2002, due to
reduced interest rates and lower debt outstanding. Guarantee fees paid to our
three principal stockholders totaled approximately $1.0 million in 2003 and
$1.3 million in 2002.  The individuals who guaranteed the Company's Original
Credit Facility (defined in "The Credit Facility" below) did not provide such
guarantees for the New Credit Facility (also defined in "The Credit Facility"
below) and, therefore, the Company will no longer be required to pay such fees
in the future.  At December 31, 2003, all of our interest-bearing debt was
related to a reducing revolving credit facility with floating interest rates


                                   -26-



tied to a base rate approximately equal to the prime rate or LIBOR (at our
option) plus a margin which fluctuates according to our ratio of funded debt
to Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA")(See Item 8, "FINANCIAL STATEMENTS, Notes to Consolidated Financial
Statements, Note 5.").  An increase in interest rates could have a material
effect on our financial results.


LIQUIDITY AND CAPITAL RESOURCES

     We have historically funded our daily hotel and casino activities with
net cash provided by operating activities.  For the years 2004, 2003, and
2002, net cash provided by operating activities totaled $25.7 million, $22.4
million, and $20.0 million, respectively.  During each of the three years, net
cash provided by operating activities was sufficient to fund our day-to-day
operating expenses.

     Net cash used in investing activities, which consisted of acquisitions of
property and equipment, totaled $9.1 million, $7.8 million, and $4.9 million
in 2004, 2003, and 2002, respectively.  Total capital expenditures, including
amounts financed, were $9.7 million, $8.4 million, and $6.5 million in 2004,
2003, and 2002, respectively.

     Net cash used in financing activities totaled $14.5 million in 2004 as we
refinanced our credit facility during 2004, simultaneously paying off old debt
and acquiring new debt.  Net cash used in financing activities totaled $14.8
million in 2003 and $13.5 million in 2002.


COMMITMENTS AND CONTINGENCIES

     Our contractual cash obligations as of December 31, 2004 over the next
five years and thereafter are as follows:

<TABLE>
<CAPTION>
                                                  Payments Due by Period
                              ---------------------------------------------------------------
<S>                           <C>          <C>          <C>          <C>
Contractual Cash                            Less than       1 to 3      4 to 5     more than
Obligations                      Total        1 year        years        years      5 years
                              ---------------------------------------------------------------
Long-Term Debt                $32,400,000  $        -   $        -   $32,400,000   $       -
Operating Leases(1)             5,538,131      450,631      740,000      740,000    3,607,500
Purchase Obligations(2)         1,962,000    1,962,000           -            -            -
                              -----------  -----------  -----------  -----------   ----------
Total Contractual Cash
Obligations                   $39,900,131  $ 2,412,631  $   740,000  $33,140,000   $3,607,500
                              ===========  ===========  ===========  ===========   ==========
(1) Operating leases include $370,000 per year in lease and common expense payments to the
shopping center adjacent to the Atlantis (see Capital Spending and Development).

(2) Our open purchase order commitments total approximately $2.0 million.  Of the total purchase
order commitments, approximately $1.6 million are cancelable by the Company upon providing a 30-
day notice.
</TABLE>

     On March 10, 2003, we announced a plan to repurchase up to 250,000
shares, or 2.6%, of our common stock in open market transactions.  The
repurchases may be made from time to time depending on market conditions and
availability of funds.  The repurchases are to be made with our cash (see our

                                   -27-



Current Report filed on Form 8-K dated March 10, 2003).  We did not purchase
any shares of our common stock pursuant to this stock repurchase program
during 2004.  During 2003, we purchased 180,000 shares of our common stock
pursuant to this stock repurchase program.  The New Credit Facility (as
defined below) requires achievement of certain financial ratios before we can
repurchase our common stock.

     We believe that our existing cash balances, cash flow from operations,
equipment financing, and borrowings available under the New Credit Facility,
which were $40.25 million at December 31, 2004, will provide us with
sufficient resources to fund our operations, meet our debt obligations, and
fulfill our capital expenditure requirements; however, our operations are
subject to financial, economic, competitive, regulatory, and other factors,
many of which are beyond our control.  If we are unable to generate sufficient
cash flow, we 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.

THE CREDIT FACILITY  Until February 20, 2004, we had a reducing revolving term
loan credit facility with a consortium of banks that was to expire on June 30,
2004, and in the original amount of $80 million but that had been reduced to
$46 million at payoff (the "Original Credit Facility").

     On February 20, 2004, the Original Credit Facility was refinanced (the
"New Credit Facility") for $50 million, which included the $46 million payoff
of the unpaid balance of the Original Credit Facility.  The amount of the New
Credit Facility, which is also a reducing revolving facility, may be increased
by up to $30 million on a one-time basis and if requested by us before the
second anniversary of the closing date, as defined.  At our option, borrowings
under the New Credit Facility will accrue interest at a rate designated by the
agent bank at 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 us will include a margin added to either the Base Rate or to
LIBOR that is tied to our ratio of funded debt to EBITDA (the "Leverage
Ratio").  Depending on our Leverage Ratio, this margin can vary between 0.25
percent and 1.25 percent above the Base Rate, and between 1.50 percent and
2.50 percent above LIBOR (under the Original Credit Facility, this margin
varied 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, 2004, the
applicable margin was the Base Rate plus 0.25%, and the applicable LIBOR
margin was LIBOR plus 1.5%. At December 31, 2004, the Base Rate was 5.25% and
the LIBOR rate was 2.19%. At December 31, 2004, the Company had $2.5 million
in Base Rate loans outstanding and had one LIBOR loan outstanding totaling
$29.9 million, for a total obligation of $32.4 million.

     We may utilize proceeds from the New Credit Facility for working capital
needs and general corporate purposes relating to the Atlantis and for ongoing
capital expenditure requirements at the Atlantis.

     The New Credit Facility is secured by liens on substantially all of the
real and personal property of the Atlantis, and is guaranteed by Monarch. The
Original Credit Facility was guaranteed individually by certain controlling
stockholders of the Company.  These individuals were not required to provide
any personal guarantees for the New Credit Facility and, therefore, going
forward, we will no longer incur guarantee fee expenses.


                                   -28-



     The New 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 our assets and covenants restricting our
ability to merge, transfer ownership of Monarch, incur additional
indebtedness, encumber assets, and make certain investments.  The New Credit
Facility also contains covenants requiring us to maintain certain financial
ratios, and provisions restricting transfers between Monarch and its
affiliates.  The New Credit Facility also contains provisions requiring the
achievement of certain financial ratios before we can repurchase our common
stock. We do not consider the covenants to restrict our operations.

     The maturity date of the New Credit Facility is February 23, 2009.
Beginning June 30, 2004, the maximum principal available under the Credit
Facility will be reduced over five years by an aggregate of $30.875 million in
equal increments of $1.625 million per quarter with the remaining balance due
at the maturity date.  We may prepay borrowings under the New Credit Facility
without penalty (subject to certain charges applicable to the prepayment of
LIBOR borrowings prior to the end of the applicable interest period).  Amounts
prepaid under the New Credit Facility may be reborrowed so long as the total
borrowings outstanding do not exceed the maximum principal available.  At
December 31, 2004, our available borrowings were $40.25 million with an
outstanding balance of $32.4 million.  We may also permanently reduce the
maximum principal available under the New Credit Facility at any time so long
as the amount of such reduction is at least $500,000 and a multiple of
$50,000.  We also benefited from a reduced loan amortization schedule, from $3
million per quarter under the Original Credit Facility to $1.625 million per
quarter under the New Credit Facility.

     As of December 31, 2004, our Leverage Ratio had been equal to or less
than one-to-one for the second consecutive quarter. Per the New Credit
Facility, if we achieve a Leverage Ratio equal to or less than one-to-one for
two consecutive quarters, our scheduled reduction of the next consecutive
fiscal quarter is waived.  Management has assumed that we will maintain a
leverage ratio equal to or less than one-to-one for the remaining term of the
New Credit Facility and, therefore, no principal reductions will be due until
the New Credit Facility matures in 2009.

     We paid various one-time fees and other loan costs upon the closing of
the refinancing of the New Credit Facility that will be amortized over the
term of the New Credit Facility using the straight-line method

     Annual maturities of long-term debt, after giving effect to management's
assumptions regarding our Leverage Ratio going forward, as of December 31,
2004, are as follows:

<TABLE>
<CAPTION>

     <S>                                 <C>
     Year ending December 31,
         2005 .........................            -
         2006 .........................            -
         2007 .........................            -
         2008 .........................            -
         2009 .........................    32,400,000
                                         ------------
                                         $ 32,400,000
                                         ============
</TABLE>

                                   -29-



     STOCKHOLDER GUARANTEE FEES. From December 29, 1997 until February 20,
2004, all of our bank debt was personally guaranteed by our three largest
stockholders. Effective January 1, 2001 and until February 20, 2004, we
compensated the guarantors at the rate of 2% per annum of the quarterly
average outstanding bank debt.  For the twelve months ended December 31, 2004,
and 2003, we recorded interest expense in the amounts of approximately
$136,000 and $1.0 million, respectively, for these guarantee fees.  The
individuals who guaranteed our bank debt were not required to guarantee the
New Credit Facility, and, as a result, we will no longer incur these expenses.

     SHORT-TERM DEBT.  At December 31, 2004, we had no slot purchase contracts
or other short-term debt outstanding.

STATEMENT ON FORWARD LOOKING INFORMATION

     Certain information included herein contains statements that may be
considered forward-looking, such as statements relating to projections of
future results of operations or financial condition, expectations for our
casino, and expectations of the continued availability of capital resources.
Any forward-looking statement made by us necessarily is based upon a number of
estimates and assumptions that, while considered reasonable by us, is
inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control, and are
subject to change.  Actual results of our operations may vary materially from
any forward-looking statement made by us or on our behalf.  Forward-looking
statements should not be regarded as representation by us or any other person
that the forward-looking statements will be achieved.  Undue reliance should
not be placed on any forward-looking statements.  Some of the contingencies
and uncertainties to which any forward-looking statement contained herein are
subject to include, but are not limited to, the following:

EFFECTS OF CURRENT ECONOMIC AND POLITICAL CONDITIONS

     The terrorist attacks that took place in the United States on September
11, 2001, were unprecedented events that created economic and business
uncertainties, especially for the travel and tourism industry.  The potential
for future terrorist attacks, the national and international responses, and
other acts of war or hostility, including the ongoing conflict in Iraq, have
created economic and political uncertainties that could materially adversely
affect our business, results of operations, and financial condition in ways we
cannot predict.

OUR BUSINESS MAY BE ADVERSELY IMPACTED IF THE RENO ECONOMY DECLINES

     We heavily market to and rely upon business from Reno area residents.
In recent years, Reno has enjoyed robust business growth and has attracted a
number of technology, product distribution and marketing companies.  These
businesses have created jobs and helped fuel residential development,
including the southwest Reno metropolitan area near the Atlantis.  Should
there be negative changes in the business and job conditions in Reno, our
locals business, which is the most substantial part of our overall business,
could be adversely impacted.

CHANGES IN REGULATIONS ON LAND USE REQUIREMENTS COULD ADVERSELY IMPACT OUR
BUSINESS

     A change in regulations on land use requirements with regard to

                                   -30-



development of new hotel casinos in the proximity of the Atlantis could have
an adverse impact on our business, results of operations, and financial
condition.

OUR BUSINESS MAY BE ADVERSELY IMPACTED BY WEAKENED ECONOMIC CONDITIONS IN
NORTHERN CALIFORNIA AND THE PACIFIC NORTHWEST

     Because California and the Pacific Northwest are significant markets for
our leisure traveler and conventioneer customers, our business may be
adversely impacted in the event of weakened economic conditions in those
geographical markets.

FAILURE OF THE RENO-SPARKS CONVENTION CENTER TO BOOK AND ATTRACT CONVENTION
BUSINESS COULD ADVERSELY IMPACT OUR BUSINESS

     The Atlantis is the closest hotel-casino to the Reno-Sparks Convention
Center, which completed a $105 million expansion and renovation in late July
2002.  If the expanded Reno-Sparks Convention Center does not succeed in
booking the anticipated level of conventions, our future results of operations
could be adversely impacted.

OUR BUSINESS MAY BE ADVERSELY IMPACTED BY EXPANDED NATIVE AMERICAN GAMING
OPERATIONS IN CALIFORNIA AND THE PACIFIC NORTHWEST

     Our largest source of leisure traveler customers is California and the
Pacific Northwest, including a large number who drive to Reno from the San
Francisco and Sacramento metropolitan areas.  Since a California
constitutional amendment passed in 1999, development has commenced on several
large-scale Native American-owned casino facilities in that state, some of
which are located close to our key markets.  Our business may be adversely
impacted if the California casinos attract patrons who would otherwise travel
to Reno.  This risk may be greater during winter months when interstate
highways may be subject to weather-related travel restrictions.

THE GAMING INDUSTRY IS HIGHLY COMPETITIVE AND INCREASED COMPETITION COULD HAVE
A MATERIAL ADVERSE EFFECT ON OUR FUTURE OPERATIONS

     The gaming industry is highly competitive.  As competitive pressures from
California Native American casinos increase, other Reno area casinos may
intensify their targeting of the Reno area resident market, which is one of
our key markets.  Increased competitive pressures in the local market could
adversely impact our ability to continue to attract local residents to the
Atlantis, or require us to use more expensive and therefore less profitable
promotions to compete more efficiently.

     In addition, Native American gaming facilities in California and other
jurisdictions in some instances operate under regulatory requirements less
stringent than those imposed on Nevada licensed casinos, which could afford
them a competitive advantage in our markets.  Moreover, increases in the
popularity of, and competition from, Internet and other account wagering
gaming services, which allow their customers to wager on a wide variety of
sporting events and play Las Vegas-style casino games from home, could have a
material adverse effect on our business, financial condition, operating
results and prospects.



                                   -31-



ADVERSE WINTER WEATHER CONDITIONS IN THE SIERRA NEVADAS AND RENO-LAKE TAHOE
AREA COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR RESULTS OF OPERATIONS AND
FINANCIAL CONDITION

     Adverse winter weather conditions, particularly snowfall, can deter our
customers from traveling or make it difficult for them to frequent the
Atlantis.  Adverse winter weather would most significantly affect our drive-in
customers from northern California and the Pacific Northwest.  If the Reno
area itself were to experience prolonged adverse winter weather conditions,
our results of operations and financial condition could also be materially
adversely affected.

OUR RESULTS OF OPERATIONS MAY BE ADVERSELY AFFECTED BY HIGH-END PLAYERS'
WINNINGS

     Although high-end players are not the major focus of our marketing
efforts, we have selectively targeted them since opening our newest tower in
1999.  Should one or more of these high-end players win large sums in our
casino or should a material amount of credit extended to such players not be
repaid, our results of operations could be adversely impacted.

THE FARAHI FAMILY OWNS A MAJORITY OF OUR COMMON STOCK AND CONTROLS OUR AFFAIRS

     Messrs. John, Bob and Ben Farahi, our Chief Executive Officer, President,
and Chief Financial Officer, respectively, as well as the Co-Chairmen of our
Board of Directors, own approximately 44.7% of our outstanding common stock as
of March 8, 2005.  Their sister, Jila Shabanian (nee Farahi), through her
trust, owns approximately 6.0%. Accordingly, the Farahi family has the ability
to control our operations and affairs, including the election of the entire
Board of Directors and, except as otherwise provided by law, other matters
submitted to a vote of the stockholders, including a merger, consolidation or
sale of the assets of Monarch.

A CHANGE IN CONTROL COULD RESULT IN THE ACCELERATION OF OUR DEBT OBLIGATIONS

     Certain changes in control could result in the acceleration of the
repayment of our bank debt.  This acceleration could be triggered in the event
the Farahi family sells enough of their stock to result in another stockholder
acquiring more than 50% of our shares or upon their deaths if their respective
heirs must sell a substantial number of our shares to obtain funds to pay
estate tax liabilities.  We cannot assure you that we would be able to repay
indebtedness whose maturity is accelerated as a result of such a change in
control, and such an inability would materially adversely affect our financial
condition.

IF WE LOSE OUR KEY PERSONNEL, OUR BUSINESS COULD BE MATERIALLY ADVERSELY
AFFECTED

     We depend on the continued performances of John Farahi, Bob Farahi and
Ben Farahi, our Chief Executive Officer, our President, and our Chief
Financial Officer, respectively, and their management team.  If we lose the
services of the Farahi brothers, or our other senior Atlantis management
personnel, and cannot replace such persons in a timely manner, our business
could be materially adversely affected.




                                   -32-



OUR BUSINESS IS SUBJECT TO RESTRICTIONS AND LIMITATIONS IMPOSED BY GAMING
REGULATORY AUTHORITIES THAT COULD ADVERSELY AFFECT US

     The ownership and operation of casino gaming facilities are subject to
extensive state and local regulation.  The State of Nevada and the applicable
local authorities require various licenses, registrations, permits and
approvals to be held by us and our subsidiary.  The Nevada Gaming Commission
may, among other things, limit, condition, suspend, revoke or decline to renew
a license or approval to own the stock of our Nevada subsidiary for any cause
deemed reasonable by such licensing authority.  If we violate gaming laws or
regulations, substantial fines could be levied against us, our subsidiary and
the persons involved, and we could be forced to forfeit a portion of our
assets.  The suspension, revocation or non-renewal of any of our licenses or
the levy on us of substantial fines or forfeiture of assets would have a
material adverse effect on our business, financial condition and results of
operations.

     To date, we have obtained all governmental licenses, findings of
suitability, registrations, permits and approvals necessary for the operation
of our current gaming activities.  However, gaming licenses and related
approvals are deemed to be privileges under Nevada law.  We cannot assure you
that our existing licenses, permits and approvals will be maintained or
extended.

IF THE STATE OF NEVADA OR THE CITY OF RENO INCREASES GAMING TAXES AND FEES,
OUR RESULTS OF OPERATIONS COULD BE ADVERSELY AFFECTED

     State and local authorities raise a significant amount of revenue through
taxes and fees on gaming activities.  From time to time, legislators and
officials have proposed changes in tax laws, or in the administration of such
laws, affecting the gaming industry.  In addition, worsening economic
conditions could intensify the efforts of state and local governments to raise
revenues through increases in gaming taxes.  If the State of Nevada or the
City of Reno were to increase gaming taxes and fees, our results of operations
could be adversely affected.

     A significant portion of our revenues and operating income are generated
from patrons who are residents of Northern California.  A change in general
economic conditions or the extent and nature of casino gaming in California,
Washington or Oregon could adversely affect our operating results.  On
September 10, 1999, California lawmakers approved a constitutional amendment
that would give Indian tribes the right to offer slot machines and a range of
house-banked card games.  On March 7, 2000, California voters approved the
constitutional amendment.  Several Native American casinos have opened in
Northern California since passage of the constitutional amendment.  Certain
experienced Nevada gaming operators have agreements to build and manage Indian
casino facilities near Sacramento, one of Reno's key feeder markets.  One
major facility near Sacramento has been operating since June 2003 and has been
very successful, adversely impacting many hotel casinos in Reno. Once these
facilities receive all the required permits and are built, they could provide
an alternative to Reno area casinos, especially during certain winter periods
when auto travel through the Sierra Nevadas is hampered.

     We also believe that the legalization of unlimited land-based casino
gaming in or near any major metropolitan area in the Atlantis' key non-Reno
marketing areas, such as San Francisco or Sacramento, could have a material
adverse impact on our business.

                                   -33-



     In June 2004, five California Indian tribes signed compacts with the
state that allows the tribes to increase the number of slot machines beyond
the previous 2,000-per-tribe limit in exchange for higher fees from each of
the five tribes.  The State of California hopes to sign similar compacts with
more Indian tribes.

     Other states are also considering legislation enabling the development
and operation of casinos or casino-like operations.


RECENTLY ISSUED ACCOUNTING STANDARDS

     In December 2004, the FASB issued Statement of Financial Accounting
Standards No. 123R (Revised 2004), "Share-Based Payment ("SFAS No.123R"),
which requires that the compensation cost relating to share-based payment
transactions be recognized in financial statements based on alternative fair
value models.  The share-based compensation cost will be measured based on
fair value models of the equity or liability instruments issued.  We currently
disclose pro forma compensation expense quarterly and annually by calculating
the stock option grants' fair value using the Black-Scholes model and
disclosing the impact on net income and net income per share in a Note to the
Consolidated Financial Statements.  Upon adoption, pro forma disclosure will
no longer be an alternative.  SFAS No.123R also requires the benefits of tax
deductions in excess of recognized compensation cost to be reported as a
financing cash flow rather than as an operating cash flow as required under
current literature.  This requirement will reduce net operating cash flows and
increase net financing cash flows in periods after adoption. The Company will
begin to apply SFAS No.123R using an appropriate fair value model as of the
interim reporting period ending on September 30, 2005.  We are currently
evaluating the provisions of SFAS No. 123(R) to determine its impact on our
future financial statements.

     In November 2004, the FASB issued Statement of Financial Accounting
Standards (SFAS) No. 151, "Inventory Costs." The statement is effective for
inventory costs incurred during fiscal years beginning after June 15, 2005. We
are currently evaluating the provisions of SFAS No. 151 to determine its
impact on our future financial statements.

     In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary
Assets."  This statement is based on the principle that exchanges of
nonmonetary assets should be measured based on fair value of the assets
exchanged. This statement is effective for nonmonetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. We are currently
evaluating the provisions of SFAS No. 153 to determine its impact on our
future financial statements.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Market risk is the risk of loss arising from adverse changes in market
risks and prices, such as interest rates, foreign currency exchange rates and
commodity prices.  We do not have any cash or cash equivalents as of December
31, 2004 that are subject to market risks.

     We have substantial variable interest rate debt in the amount of
approximately $32.4 million as of December 31, 2004, and $47.0 million as of
December 31, 2003, which is subject to market risks.

     A one percent increase in interest rates would have resulted in an
increase in interest expense of approximately $397,000 in 2004 and $524,000 in
2003.

                                   -34-



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


         REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Monarch Casino & Resort, Inc.:

We have audited the accompanying consolidated balance sheets of Monarch
Casino & Resort, Inc. and Subsidiary (the "Company") as of December 31, 2004
and 2003, and the related consolidated statements of income, stockholders'
equity and cash flows for the years then ended. Our audits also included the
financial statement schedule in the Index at Item 15(a)(2). These financial
statements and schedule are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements and
schedule based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  We were
not engaged to perform an audit of the Company's internal control over
financial reporting.  Our audit included consideration of internal control
over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial
reporting.  Accordingly, we express no such opinion.  An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and 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 the Company as
of December 31, 2004 and 2003 and the consolidated results of its operations
and its cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States. Also, in our opinion,
such financial statement schedule, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.


                                                     /s/ Ernst & Young LLP

Las Vegas, Nevada
February 11, 2005












                                   -35-



         REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Monarch Casino & Resort, Inc.:

     We have audited the accompanying consolidated statements of income,
stockholders' equity, and cash flows for the year ended December 31, 2002 of
Monarch Casino & Resort, Inc. and Subsidiary (the "Company"). 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 audit.

     We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting.  Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances but not
for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting.  Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.  We
believe that our audit provides a reasonable basis for our opinion.

     In our opinion, such consolidated financial statements present
fairly, in all material respects, the results of operations and cash flows
of Monarch Casino & Resort, Inc. and Subsidiary for the year ended
December 31, 2002, in conformity with accounting principles generally
accepted in the United States of America.

/s/ Deloitte & Touche LLP

Reno, Nevada
February 18, 2003




















                                   -36-



                 MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
                                                  Years ended December 31,
                                         -------------------------------------------
                                             2004           2003            2002
                                         ------------   ------------    ------------
<S>                                      <C>            <C>             <C>
Revenues
  Casino................................ $ 84,131,876   $ 74,955,744   $ 70,772,939
  Food and beverage.....................   37,333,977     34,498,613     33,646,938
  Hotel.................................   24,318,082     21,236,808     20,303,439
  Other.................................    3,892,669      4,005,426      3,690,180
                                         ------------   ------------    ------------
     Gross revenues.....................  149,676,604    134,696,591    128,413,496
  Less promotional allowances...........  (20,219,714)   (18,746,078)   (17,375,926)
                                         ------------   ------------    ------------
     Net revenues.......................  129,456,890    115,950,513    111,037,570
                                         ------------   ------------    ------------
Operating expenses
  Casino................................   30,513,391     29,321,060     27,690,033
  Food and beverage.....................   18,859,211     17,701,143     17,591,945
  Hotel.................................    7,858,616      6,991,581      6,543,610
  Other.................................    1,344,163      1,270,624      1,254,179
  Selling, general and administrative...   34,979,998     32,659,258     30,441,900
  Depreciation and amortization.........    9,627,870     10,797,494     10,320,403
                                         ------------   ------------    ------------
     Total operating expenses...........  103,183,249     98,741,160     93,842,070
                                         ------------   ------------    ------------
     Income from operations.............   26,273,641     17,209,353     17,195,500
                                         ------------   ------------    ------------
Other expense
  Interest expense, net.................   (1,448,125)    (1,607,840)    (2,633,917)
  Stockholder guarantee fee expense.....     (136,164)    (1,030,010)    (1,300,446)
  Stock transaction expense.............           -              -        (228,020)
                                         ------------   ------------    ------------
     Total other expense................   (1,584,289)    (2,637,850)    (4,162,383)
                                         ------------   ------------    ------------
     Income before income taxes.........   24,689,352     14,571,503     13,033,117
Provision for income taxes..............    8,162,912      4,965,580      4,429,771
                                         ------------   ------------    ------------
     Net income ........................ $ 16,526,440   $  9,605,923    $ 8,603,346
                                         ============   ============    ============

EARNINGS PER SHARE OF COMMON STOCK
Net income
     Basic..............................    $    1.76      $    1.02      $    0.91
     Diluted............................    $    1.76      $    1.02      $    0.90
  Weighted average number of
   common shares and potential
   common shares outstanding
     Basic..............................    9,378,225      9,379,446      9,457,669
     Diluted............................    9,407,343      9,412,459      9,521,353
</TABLE>

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











                                   -37-



                MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                        December 31,
                                               ----------------------------
                                                   2004            2003
                                               ------------    ------------
<S>                                            <C>             <C>
ASSETS
Current assets
  Cash........................................ $ 11,814,778    $  9,711,310
  Receivables, net............................    2,959,894       2,818,727
  Federal income tax refund receivable........      493,797         756,698
  Inventories.................................    1,452,696       1,245,967
  Prepaid expenses............................    2,346,242       2,234,773
  Deferred income taxes.......................    1,115,719         542,457
                                               ------------    ------------
     Total current assets.....................   20,183,126      17,309,932
                                               ------------    ------------
Property and equipment
  Land........................................   10,339,530      10,339,530
  Land improvements...........................    3,226,913       3,226,913
  Buildings...................................   78,955,538      78,955,538
  Building improvements.......................    7,524,680       6,304,642
  Furniture and equipment.....................   65,146,594      63,230,354
  Leasehold improvement.......................    1,346,965              -
                                               ------------    ------------
                                                166,540,220     162,056,977
  Less accumulated
   depreciation and amortization..............  (68,791,045)    (63,618,047)
                                               ------------    ------------
     Net property and equipment...............   97,749,175      98,438,930

Other assets, net.............................      406,620         128,263
                                               ------------    ------------
                                               $118,338,921    $115,877,125
                                               ============    ============
</TABLE>

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























                                   -38-



                MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                        December 31,
                                               ----------------------------
                                                   2004            2003
                                               ------------    ------------
<S>                                            <C>             <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Current maturities of long-term debt........ $         -     $  6,059,591
  Accounts payable............................    5,747,775       8,407,887
  Accrued expenses............................    7,918,299       6,707,257
                                               ------------    ------------
     Total current liabilities................   13,666,074      21,174,735

Long-term debt, less current maturities.......   32,400,000      41,125,000
Deferred income taxes.........................    6,509,505       4,854,587

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;
   9,406,224 outstanding at 12/31/04;
   9,340,328 outstanding at 12/31/03..........       95,363          95,363
  Additional paid-in capital..................   17,463,272      17,432,635
  Treasury stock, 130,051 shares at 12/31/04
  195,947 shares at 12/31/03, at cost..........    (954,152)     (1,437,614)
  Retained earnings...........................   49,158,859      32,632,419
                                               ------------    ------------
     Total stockholders' equity...............   65,763,342      48,722,803
                                               ------------    ------------
                                               $118,338,921    $115,877,125
                                               ============    ============
</TABLE>

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























                                   -39-



                MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                               Common Stock
                           --------------------  Additional
                             Shares               Paid-in     Retained    Treasury
                           Outstanding  Amount    Capital     Earnings      Stock       Total
                           ----------- -------- ------------ ----------- ----------- ------------
<S>                        <C>         <C>      <C>          <C>         <C>         <C>
Balance, January 1, 2002     9,436,275 $ 95,363  $17,241,788 $14,423,150  $ (329,875) $31,430,426
  Exercise of stock options     38,555       -       139,729          -      127,183      266,912
  Net income                        -        -            -    8,603,346          -     8,603,346
                           ----------- -------- ------------ ----------- ----------- ------------
Balance, December 31, 2002   9,474,830   95,363   17,381,517  23,026,496    (202,692)  40,300,684
  Exercise of stock options     45,498       -        51,118          -      192,478      243,596
  Stock repurchase            (180,000)      -            -           -   (1,427,400)  (1,427,400)
  Net income                        -        -            -    9,605,923          -     9,605,923
                           ----------- -------- ------------ ----------- ----------- ------------
Balance, December 31, 2003   9,340,328   95,363   17,432,635  32,632,419  (1,437,614)  48,722,803
  Exercise of stock options     65,896       -        30,637          -      483,462      514,099
  Net income                        -        -            -   16,526,440          -    16,526,440
                           ----------- -------- ------------ ----------- ----------- ------------
Balance, December 31, 2004   9,406,224 $ 95,363  $17,463,272 $49,158,859 $  (954,152) $65,763,342
                           =========== ======== ============ =========== =========== ============
</TABLE>

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


































                                   -40-



                MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                         Years ended December 31,
                                                ------------------------------------------
                                                    2004           2003           2002
                                                ------------   ------------   ------------
<S>                                             <C>            <C>            <C>
Cash flows from operating activities:
  Net income .................................. $ 16,526,440   $  9,605,923   $  8,603,346
  Adjustments to reconcile net income to
   net cash provided by operating activities:
    Depreciation and amortization..............    9,627,870     10,797,494     10,320,403
    Amortization of deferred loan costs........      173,708        179,427        179,425
    Provision for bad debts....................      394,065        742,407        634,934
    Loss (gain) on disposal of assets..........      172,893       (133,301)       (34,647)
    Deferred income taxes......................    1,081,656        277,842        189,516
  Changes in assets and liabilities
    Receivables, net...........................     (272,331)    (1,416,785)       279,057
    Inventories................................     (206,728)      (252,708)       (17,118)
    Prepaid expenses...........................     (111,469)      (273,009)      (502,959)
    Other assets...............................     (452,065)        10,684        (16,113)
    Accounts payable...........................   (2,660,112)     2,180,763       (221,963)
    Accrued expenses...........................    1,459,395        682,322        584,387
                                                ------------   ------------   ------------
     Net cash provided by
      operating activities.....................   25,733,322     22,401,059     19,998,268
                                                ------------   ------------   ------------
Cash flows from investing activities:
  Proceeds from sale of assets.................       38,954        154,869         48,979
  Acquisition of property and equipment........   (9,149,964)    (7,996,678)    (4,802,525)
  Changes in accounts payable construction.....           -              -        (147,481)
                                                ------------   ------------   ------------
     Net cash used in investing activities.....   (9,111,010)    (7,841,809)    (4,901,027)
                                                ------------   ------------   ------------
Cash flows from financing activities:
  Proceeds from exercise of stock options......      265,747        122,092        126,116
  Proceeds from long-term borrowings...........   49,460,304      1,000,000        500,000
  Principal payments on long-term debt.........  (64,244,895)   (14,504,116)   (14,147,616)
  Purchase of Monarch common stock.............           -      (1,427,400)            -
                                                ------------   ------------   ------------
     Net cash used in financing activities.....  (14,518,844)   (14,809,424)   (13,521,500)
                                                ------------   ------------   ------------

     Net increase (decrease) in cash...........    2,103,468       (250,174)     1,575,741

Cash at beginning of year......................    9,711,310      9,961,484      8,385,743
                                                ------------   ------------   ------------
Cash at end of year............................ $ 11,814,778   $  9,711,310   $  9,961,484
                                                ============   ============   ============

Supplemental disclosure of
 cash flow information:
  Cash paid for interest....................... $  1,420,230   $  2,421,094   $  3,927,016
  Cash paid for income taxes................... $  6,570,000   $  5,146,612   $  4,105,760

Supplemental schedule of non-cash
 investing and financing activities:
  The Company financed the purchase of property
   and equipment in the following amounts...... $    560,304   $    409,612   $  1,583,868
</TABLE>

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





                                   -41-



                MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

     Monarch Casino & Resort, Inc. ("Monarch"), a Nevada corporation, was
incorporated in 1993.  Monarch's wholly-owned subsidiary, Golden Road Motor
Inn, Inc. ("Golden Road"), operates the Atlantis Casino Resort (the
"Atlantis"), a hotel/casino facility in Reno, Nevada.  Unless stated
otherwise, the "Company" refers collectively to Monarch and its Golden Road
subsidiary.

     The consolidated financial statements include the accounts of Monarch and
Golden Road.  Intercompany balances and transactions are eliminated.

Use of Estimates

     In preparing these financial statements in conformity with U.S. 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.

Self-insurance Reserves

     The Company reviews self-insurance reserves at least quarterly. The
amount of reserve is determined by reviewing the actual expenditures for the
previous twelve-month period and reviewing reports prepared by the third party
plan administrator for any significant unpaid claims.  The reserve is accrued
at an amount that approximates amounts needed to pay both reported and
unreported claims as of the balance sheet date, which management believes are
adequate.

Capitalized Interest

     The Company capitalizes interest costs associated with debt incurred in
connection with major construction projects.  When no debt is specifically
identified as being incurred in connection with a construction project, the
Company capitalizes interest on amounts expended on the project at the
Company's average cost of borrowed money.  Interest capitalization is ceased
when the project is substantially complete.  The Company did not record
capitalized interest during the years ended December 31, 2004, 2003, and 2002.

Stockholder Guarantee Fees

     All of the Company's bank debt was personally guaranteed by the Company's
three largest stockholders since the inception of our original loan agreement
on December 29, 1997. Effective January 1, 2001, until February 20, 2004, the
Company compensated the guarantors at the rate of 2% per annum of the
quarterly average outstanding bank debt amount.  For the years ended December
31, 2004, 2003, and 2002, the Company recorded interest expense in the amounts
of approximately $136,000, $1.0 million and $1.3 million, respectively, for
these guarantee fees.  The individuals who guaranteed our Original Credit
Facility were not required to do so for the New Credit Facility (as defined in
NOTE 5. - LONG-TERM DEBT).  Therefore, the Company no longer incurs such
guarantee fee expenses.

                                   -42-



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 a straight line basis over the estimated service
lives as follows:

     Land improvements ........... 15-40 years
     Buildings ................... 30-40 years
     Building improvements ....... 15-40 years
     Furniture ...................  5-10 years
     Equipment ...................  5-20 years

     In accordance with SFAS No. 144, "Accounting for the Impairment and
Disposal of Long-Lived Assets," the Company evaluates the carrying value of
its long-lived assets for impairment at least annually or whenever events or
changes in circumstances indicate that the carrying value of the assets may
not be recoverable from related future undiscounted cash flows.  Indicators
which could trigger an impairment review include legal and regulatory factors,
market conditions and operational performance.  Any resulting impairment loss,
measured as the difference between the carrying amount and the fair value of
the assets, could have a material adverse impact on the Company's financial
condition and results of operations.

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 slot participation fees, progressive
jackpots and any pre-arranged marker discounts.

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,
                               ---------------------------------------
                                   2004          2003          2002
                               -----------   -----------   -----------
     <S>                       <C>           <C>           <C>
     Food and beverage.......  $10,393,036   $ 9,744,346   $ 8,810,054
     Hotel...................    1,692,539     1,766,016     1,648,735
     Other...................      402,496       269,246       197,906
                               -----------   -----------   -----------
                               $12,488,071   $11,779,608   $10,656,695
                               ===========   ===========   ===========
</TABLE>



                                   -43-



Advertising Costs

     All advertising costs are expensed as incurred.  Advertising expense,
which is included in selling, general & administrative expense, was
$3,455,130, $3,249,065, and $3,240,402 for 2004, 2003, and 2002, respectively.

Income Taxes

     Income taxes are recorded in accordance with the liability method
specified by Statement of Financial Accounting Standards ("SFAS") No. 109
"Accounting for Income Taxes."  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 income 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 income taxes
is reduced, if necessary, by the amount of any tax benefits that, based upon
available evidence, are not expected to be realized.

Stock Based Compensation

     The Company maintains three stock option plans, which are described more
fully in Note 7. The Company accounts for these plans under the recognition
and measurement principles of Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees" ("APB No. 25") and related
interpretations in accounting for its plans. No stock-based compensation costs
are reflected in net income, as all options granted under those plans had an
exercise price equal to the market value of the underlying common stock on the
date of the grant.  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 Statement of Financial
Accounting Standards ("SFAS No. 123"), "Accounting for Stock-Based
Compensation," (and as amended by SFAS No. 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure," which the Company adopted for the
fiscal year ended December 31, 2004), net income and income per share would
have been changed to the pro forma amounts indicated below:


















                                   -44-



<TABLE>
<CAPTION>
                                                Years ended December 31,
                                       ---------------------------------------
                                          2004           2003          2002
                                       -----------    ----------    ----------
<C>                                    <C>            <C>           <C>
Net income, as reported                $16,526,440    $9,605,923    $8,603,346
Stock based employee compensation
  expensed determined under the fair
  value based method for all awards,
  net of related tax effects               (45,264)      (39,923)     (135,359)
                                       -----------    ----------    ----------
Pro forma net income                   $16,481,176    $9,566,000    $8,467,987
                                       ===========    ==========    ==========
Basic earnings per share
  As reported                          $      1.76    $     1.02    $     0.91
  Pro forma                            $      1.76    $     1.02    $     0.90

Diluted earnings per share
  As reported                          $      1.76    $     1.02    $     0.90
  Pro forma                            $      1.75    $     1.02    $     0.89
</TABLE>

Earnings Per Share

     The Company reports "basic" earnings per share and "diluted" earnings per
share in accordance with the provisions of SFAS No. 128, "Earnings Per Share."
Basic earnings per share is computed by dividing reported net earnings by the
weighted-average number of common shares outstanding during the period.
Diluted earnings per share reflect the additional dilution for all potentially
dilutive securities such as stock options.

     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,
                                ------------------------------------------------------
                                      2004               2003               2002
                                ----------------   ----------------   ----------------
                                       Per Share          Per Share          Per Share
                                Shares   Amount    Shares   Amount    Shares   Amount
                                ------ ---------   ------ ---------   ------ ---------
<S>                             <C>    <C>         <C>    <C>         <C>    <C>
Net income
     Basic.....................  9,378   $ 1.76     9,379   $ 1.02     9,458   $ 0.91
     Effect of dilutive
       stock options...........     29       -         33       -         63    (0.01)
                                ------  --------   ------   -------   ------   -------
     Diluted...................  9,407   $ 1.76     9,412   $ 1.02     9,521   $ 0.90
                                ======  ========   ======   =======   ======   =======
</TABLE>

     The following options were not included in the computation of diluted
earnings per share because the options' exercise prices were greater than the
average market price of the common shares and their inclusion would be
antidilutive:







                                   -45-



<TABLE>
<CAPTION>
                                            2004           2003          2002
                                       -------------   ------------   -----------
     <S>                               <C>             <C>            <C>
     Options to purchase shares of
       common stock (in thousands)....      406             19            14
     Exercise prices.................. $23.37-$34.39   $10.90-14.37   $11.99-14.37
     Expiration dates (mo./yr.).......  10/14-11/14     6/07-11/13     6/07-8/12
</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 has 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 approximate fair value because of the short-term nature of these
instruments.

     The fair value of long-term debt approximates fair value based on the
current borrowing rates offered to the Company for debt of the same remaining
maturities.

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.

Certain Risks and Uncertainties

     A significant portion of the Company's revenues and operating income are
generated from patrons who are residents of northern California.  A change in
general economic conditions or the extent and nature of casino gaming in
California, Washington or Oregon could adversely affect the Company's
operating results.  The constitutional amendment approved by California voters
in 1999 allowing the expansion of Indian casinos in California has had an
impact on casino revenues in Nevada in general, and many analysts have
continued to predict the impact will be more significant on the Reno-Lake
Tahoe market.  The extent of this continued impact is difficult to predict,
but we believe that the impact on us will continue to be mitigated to some
extent due to the Atlantis' emphasis on Reno area residents as a significant
base of its business, as well as its proximity to the Reno-Sparks Center.
However, if other Reno area casinos continue to suffer business losses due to
increased pressure from California Indian casinos, they may intensify their
marketing efforts to Reno-area residents as well. However, we believe our


                                   -46-



numerous amenities such as a wide array of restaurants, a video arcade,
banquet facilities and surface parking are a key factor in our ability to
attract Locals which competitor facilities will not easily be able to match
without major capital expenditures.

     Certain experienced Nevada gaming operators have agreements to build and
manage Indian casino facilities near San Francisco, one of Reno's key feeder
markets.  One major facility near Sacramento has been operating since June
2003 and has been very successful, adversely impacting many hotel casinos in
Reno. Once these facilities receive all the required permits and are built,
they could provide an alternative to Reno area casinos, especially during
certain winter periods when auto travel through the Sierra Nevada mountains is
hampered.

     We also believe that the legalization of unlimited land-based casino
gaming in or near any major metropolitan area in the Atlantis' key non-Reno
marketing areas, such as San Francisco or Sacramento, could have a material
adverse impact on our business.

     In June 2004, five California Indian tribes signed compacts with the
state that allows the tribes to increase the number of slot machines beyond
the previous 2,000-per-tribe limit in exchange for higher fees from each of
the five tribes.  The State of California hopes to sign similar compacts with
more Indian tribes.

     In addition, the Company relies on non-conventioneer visitors partially
comprised of individuals flying into the Reno area.  The "War on Terrorism,"
combined with the ongoing situation in Iraq and the threat of further
terrorist attacks could have an adverse effect on the Company's revenues from
this segment.  The terrorist attacks that took place in the United States on
September 11, 2001 were unprecedented events that created economic and
business uncertainties, especially for the travel and tourism industry.  The
potential for future terrorist attacks, the national and international
responses, and other acts of war or hostility including the ongoing situation
in Iraq, have created economic and political uncertainties that could
materially adversely affect our business, results of operations, and financial
condition in ways we cannot predict.

     A change in regulations on land use requirements with regard to
development of new hotel casinos in the proximity of the Atlantis could have
an adverse impact on our business, results of operations, and financial
condition.


IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

     In December 2004, the FASB issued Statement of Financial Accounting
Standards No. 123R (Revised 2004), "Share-Based Payment ("SFAS No.123R"),
which requires that the compensation cost relating to share-based payment
transactions be recognized in financial statements based on alternative fair
value models.  The share-based compensation cost will be measured based on
fair value models of the equity or liability instruments issued.  We currently
disclose pro forma compensation expense quarterly and annually by calculating
the stock option grants' fair value using the Black-Scholes model and
disclosing the impact on net income and net income per share in a Note to the
Consolidated Financial Statements.  Upon adoption, pro forma disclosure will
no longer be an alternative.  SFAS No.123R also requires the benefits of tax
deductions in excess of recognized compensation cost to be reported as a

                                   -47-



financing cash flow rather than as an operating cash flow as required under
current literature.  This requirement will reduce net operating cash flows and
increase net financing cash flows in periods after adoption.  The Company will
begin to apply SFAS No.123R using an appropriate fair value model as of the
interim reporting period ending September 30, 2005.  We are currently
evaluating the provisions of SFAS No. 123(R) to determine its impact on our
future financial statements.

     In November 2004, the FASB issued Statement of Financial Accounting
Standards (SFAS) No. 151, "Inventory Costs." The statement is effective for
inventory costs incurred during fiscal years beginning after June 15, 2005. We
are currently evaluating the provisions of SFAS No. 151 to determine its
impact on our future financial statements.

     In December 2004, the FASB issued SFAS No. 153, "Exchanges of
Nonmonetary Assets."  This statement is based on the principle that exchanges
of nonmonetary assets should be measured based on fair value of the assets
exchanged. This statement is effective for nonmonetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. We are currently
evaluating the provisions of SFAS No. 153 to determine its impact on our
future financial statements.


NOTE 2.  ACCOUNTS RECEIVABLE

     Accounts receivable consist of the following:

<TABLE>
<CAPTION>
                                          December 31,
                                   -------------------------
                                       2004          2003
                                   -----------   -----------
     <S>                           <C>           <C>
     Casino....................... $ 2,692,183   $ 2,964,684
     Hotel........................     690,278       655,100
     Other........................     378,116       229,561
                                   -----------   -----------
                                     3,760,577     3,849,345
     Less allowance for
       doubtful accounts..........    (800,683)   (1,030,618)
                                   -----------   -----------
                                   $ 2,959,894   $ 2,818,727
                                   ===========   ===========
</TABLE>

     The Company recorded bad debt expense of $394,065, $742,407 and $634,934
in 2004, 2003, and 2002, respectively.













                                   -48-



NOTE 3.  ACCRUED EXPENSES

     Accrued expenses consist of the following:

<TABLE>
<CAPTION>
                                               December 31,
                                        -------------------------
                                            2004          2003
                                        -----------   -----------
     <S>                                <C>           <C>
     Accrued salaries, wages
       and related benefits............ $ 4,301,646   $ 3,459,596
     Progressive slot machine
       and other gaming accruals.......   1,622,669     1,341,454
     Accrued gaming taxes..............     431,920       310,691
     Accrued interest..................     129,782       139,431
     Other accrued liabilities.........   1,432,282     1,456,085
                                        -----------   -----------
                                        $ 7,918,299   $ 6,707,257
                                        ===========   ===========
</TABLE>


NOTE 4.  LEASE COMMITMENTS

     The Company leases certain furniture and equipment.  The leases generally
provide for the lessee to pay taxes, maintenance, insurance, and certain other
operating costs of the leased property.  The leases on most of the properties
contain renewal provisions.

     In 2004, a new driveway was constructed that is being shared between the
Atlantis and the adjacent Sierra Marketplace Shopping Center that is owned and
controlled by affiliates of the Company's controlling stockholders (the
"Shopping Center").  A new traffic signal was erected at mid-block on South
Virginia Street, serving the new driveway.  As part of this project, the
Company is leasing a 37,368 square-foot corner section of the Shopping Center
for a minimum lease term of 15 years at an annual rent of $300,000, subject to
increase every 60 months based on the Consumer Price Index.  The Company is
also using part of the common area of the Shopping Center and pays its
proportional share of the common area expense of the Shopping Center. The
Company has the option to renew the lease for 3 five-year terms, and at the
end of the extension period, the Company has the option to purchase the leased
section of the Shopping Center at a price to be determined based on a MAI
Appraisal.  The Company uses the leased space for pedestrian and vehicle
access to the Atlantis, and the Company has use of a portion of the parking
spaces at the Shopping Center.  The total cost of the project was $2.0
million; we were responsible for two thirds of the total cost, or $1.35
million. The project was completed, the driveway was put into use and we began
paying rent on September 30, 2004. The cost of the new driveway is being
depreciated over the initial 15-year lease term; some components of the new
driveway are being depreciated over a shorter period of time.

     Following is a summary of future minimum payments under operating leases
that have initial or remaining noncancelable lease terms in excess of one year
at December 31, 2004:





                                   -49-



<TABLE>
<CAPTION>
                                                Operating
                                                 Leases
                                              -------------
     <S>                                      <C>
     Year ending December 31,
         2005 ..............................      450,631
         2006 ..............................      370,000
         2007 ..............................      370,000
         2008 ..............................      370,000
         2009 ..............................      370,000
         Thereafter ........................    3,607,500
                                              -------------
     Total minimum lease payments ..........   $5,538,131
                                              =============
</TABLE>

     Rental expense for operating leases amounted to $175,596, $185,304, and
$176,065, in 2004, 2003, and 2002, respectively, as reported in selling,
general and administrative expenses in the statement of income.


NOTE 5.  LONG-TERM DEBT

     Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                                             December 31,
                                                                     ---------------------------
                                                                          2004           2003
                                                                     -------------  ------------
     <S>                                                             <C>            <C>
     Amounts outstanding under bank reducing revolving
      credit facility (the "New Credit Facility"),
      collateralized by substantially all property and
      equipment of Golden Road and guaranteed by Monarch, 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 Earnings Before Interest, Taxes,
      Depreciation and Amortization ("EBITDA"). The weighted average
      interest rate was approximately 3.82% at December 31, 2004
      (see "The Credit Facility" below) .......................... $ 32,400,000            -
     Amounts outstanding under bank reducing revolving
      credit facility (the "Original 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. The weighted average interest rate was
      approximately 2.62% at December 31, 2003.  At the time of the
      refinancing of the Original Credit Facility on February 20,
      2004 (see below), the loan was paid in full...................           -    $47,000,000
     Slot purchase contracts, collateralized by equipment.
      Contracts are non-interest bearing and all mature within
      twelve months.................................................           -        184,591
                                                                     ------------   -----------
                                                                     $ 32,400,000   $47,184,591
     Less current maturities........................................           -     (6,059,591)
                                                                     ------------   -----------
                                                                     $ 32,400,000   $41,125,000
                                                                     ============   ===========
</TABLE>


                                   -50-



     THE CREDIT FACILITY.

     On February 20, 2004, the Original Credit Facility was refinanced (the
"New Credit Facility") for $50 million, which includes a $46 million payoff
for the unpaid balance of the Original Credit Facility.  The amount of the New
Credit Facility may be increased by up to $30 million on a one-time basis and
if requested by the Company before the second anniversary of the closing date,
as defined.  At the Company's option, borrowings under the New Credit Facility
will accrue interest at a rate designated by the agent bank at 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 0.25
percent and 1.25 percent above the Base Rate, and between 1.50 percent and
2.50 percent above LIBOR (under the Original Credit Facility, this margin
varied 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, 2004, the
applicable margin was the Base Rate plus 0.25%, and the applicable LIBOR
margin was LIBOR plus 1.5%. At December 31, 2004, the Base Rate was 5.25% and
the LIBOR rate was 2.19%.  At December 31, 2004, the Company had $2.5 million
in Base Rate loans outstanding and had one LIBOR loan outstanding totaling
$29.9 million, for a total obligation of $32.4 million.

     The Company may utilize proceeds from the New Credit Facility for working
capital needs and general corporate purposes relating to the Atlantis and for
ongoing capital expenditure requirements at the Atlantis.

     The New Credit Facility is secured by liens on substantially all of the
real and personal property of the Atlantis, and is guaranteed by Monarch. The
Original Credit Facility was guaranteed individually by certain executives of
the Company.  These individuals were not required to provide any personal
guarantees for the New Credit Facility and, therefore, the Company will no
longer incur guarantee fee expenses.

     The New 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 and covenants
restricting the Company's ability to merge, transfer ownership of Monarch,
incur additional indebtedness, encumber assets, and make certain investments.
The New Credit Facility also contains covenants requiring the Company to
maintain certain financial ratios, and provisions restricting transfers
between Monarch and its constituents.  The New Credit Facility also contains
provisions requiring the achievement of certain financial ratios before the
Company can repurchase its common stock.  Management does not consider the
covenants to restrict the Company's operations.

     The maturity date of the New Credit Facility is February 23, 2009.
Beginning June 30, 2004, the maximum principal available under the Credit
Facility is reduced by an aggregate of $30.875 million in equal increments of
$1.625 million per quarter with the remaining balance due at the maturity
date.  The Company may prepay borrowings under the New Credit Facility without
penalty (subject to certain charges applicable to the prepayment of LIBOR
borrowings prior to the end of the applicable interest period).  Amounts
prepaid under the New 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 available under the

                                   -51-



New Credit Facility at any time so long as the amount of such reduction is at
least $500,000 and a multiple of $50,000.

     As of December 31, 2004, our Leverage Ratio had been equal to or less
than one-to-one for the second consecutive quarter. Per the New Credit
Facility, if we achieve a Leverage Ratio equal to or less than one-to-one for
two consecutive quarters, our scheduled reduction of the next consecutive
fiscal quarter is waived.

     The Company paid various fees and other loan costs upon the closing of
the refinancing of the New Credit Facility that will be amortized over the
term of the New Credit Facility using the straight-line method.

     Annual maturities of long-term debt, after giving effect to management's
assumptions regarding our Leverage Ratio going forward, as of December 31,
2004, are as follows:

<TABLE>
<CAPTION>

     <S>                                 <C>
     Year ending December 31,
         2005 .........................            -
         2006 .........................            -
         2007 .........................            -
         2008 .........................            -
         2009 .........................  $ 32,400,000
                                         ------------
                                         $ 32,400,000
                                         ============
</TABLE>





























                                   -52-



NOTE 6.  INCOME TAX

     Income tax provision from continuing operations consists of the
following:

<TABLE>
<CAPTION>
                                                    Years ended December 31,
                                            ---------------------------------------
                                                2004          2003          2002
                                            -----------   -----------   -----------
     <S>                                    <C>           <C>           <C>
     Current provision..................... $ 7,081,256   $ 4,687,667   $ 4,240,255
     Deferred provision....................   1,081,656       277,913       189,516
                                            -----------   -----------   -----------
                                            $ 8,162,912   $ 4,965,580   $ 4,429,771
                                            ===========   ===========   ===========
</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,
                                            ---------------------------------------
                                                2004          2003          2002
                                            -----------   -----------   -----------
     <S>                                    <C>           <C>           <C>
     Income tax at the statutory rate......     35.0%         35.0%         34.0%
     Non-deductible expenses and other.....    (1.1)%          0.2%          1.2%
     Tax credits...........................    (0.8)%        (1.1)%        (1.2)%
                                            -----------   -----------   -----------
                                                33.1%         34.1%         34.0%
                                            ===========   ===========   ===========
</TABLE>

     The components of the deferred income tax assets and liabilities at
December 31, 2004 and 2003, as presented in the Consolidated Balance Sheets,
are as follows:

<TABLE>
<CAPTION>
                                                 2004           2003
                                             -----------    -----------
     <S>                                     <C>            <C>
     DEFERRED TAX ASSETS
       Compensation and benefits............ $   432,757    $   344,500
       Bad debt reserves....................     280,239        185,700
       Accrued gaming liabilities...........     227,058         96,600
       Accrued other........................     175,665        (84,343)
                                             -----------    -----------
         Deferred income tax asset           $ 1,115,719    $   542,457
                                             ===========    ===========

     DEFERRED TAX LIABILITIES
       Impairment of assets................. $   (72,260)   $   (72,260)
       Depreciation.........................  (5,924,465)    (4,467,841)
       Land basis...........................    (285,706)      (285,706)
       Other................................    (227,074)       (28,780)
                                             -----------    -----------
         Deferred income tax liability       $(6,509,505)   $(4,854,587)
                                             ===========    ===========
     NET DEFERRED INCOME TAX LIABILITY...... $(5,393,786)   $(4,312,130)
                                             ===========    ===========
</TABLE>

                                   -53-



NOTE 7.  BENEFIT PLANS

     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
contributions were approximately $44,947, $45,370, and $32,678 in 2004, 2003,
and 2002, respectively.

     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 (the "Plans"), which
collectively provide for the granting of options to purchase up to 775,000
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
Plans were amended by majority stockholder approval at the Company's 2003
Annual Meeting of Stockholders on June 12, 2003. The amendment per majority
approval extended the terms of the existing stock compensation plans,
increased the amount of option shares authorized for issue under the existing
stock compensation plans, extended the life of stock options granted under the
existing Directors' Stock Option Plan and permitted the Directors' Plan
Committee to extend the term of any existing option grants under the
Directors' Stock Option Plan, and revised the description of employees
eligible to receive options and the conditions that determine the purchase
price of stock options under the existing Executive Long-Term Incentive Stock
Option Plan.  By their amended terms, the Plans will expire in June, 2013.

     The Company has adopted the disclosure-only provisions of SFAS No. 123,
as amended by SFAS No. 148, but applies APB No. 25 and related interpretations
in accounting for its plans. No stock-based compensation costs are reflected
in net income, as all options granted under those plans had an exercise price
equal to the market value of the underlying common stock on the date of the
grant.

     The fair value of the Company's stock options, as presented in Note 1,
was estimated as of the grant date using the Black-Scholes option pricing
model with the following weighted average assumptions for 2004, 2003, and
2002: dividend yield of 0.0% for all periods; expected volatility of 45.5%,
41.9%, and 58.7%, respectively; a weighted average risk free interest rate of
3.82%, 2.80%, and 3.83%, respectively; and expected holding periods ranging
from three to nine years.












                                   -54-



     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, 2001....  159,900           3.38
      Granted............................   34,150          10.52
      Exercised..........................  (38,555)         (3.27)
      Forfeited/expired..................  (11,666)         (4.88)
                                          --------   ----------------
     Outstanding at December 31, 2002....  143,829           4.99
      Granted............................   24,150           8.51
      Exercised..........................  (45,498)         (2.69)
      Forfeited/expired..................  (10,000)        (11.93)
                                          --------   ----------------
     Outstanding at December 31, 2003....  112,481           6.07
      Granted............................  420,150          23.17
      Exercised..........................  (65,896)         (4.65)
      Forfeited/expired..................  (13,335)         (8.36)
                                          --------   ----------------
     Outstanding at December 31, 2004....  453,400         $22.15
                                          ========   ================

     Weighted average fair value of
      options granted during 2004........   $11.92
                                          ========
                             2003........   $ 3.62
                                          ========
                             2002........   $ 5.60
                                          ========


</TABLE>

<TABLE>
<CAPTION>
                                        Stock Options                Stock Options
                                         Outstanding                  Exercisable
                                   -------------------------   -------------------------
                                   Weighted
                                   Average       Weighted                     Weighted
                                   Contractual   Average                      Average
        Range of                   Life (in      Exercise                     Exercise
     Exercise Prices    Shares     years)        Price           Shares       Price
     ----------------  ---------   -----------   -----------   ----------     ----------
     <S>               <C>         <C>           <C>           <C>            <C>
     $2.88 to $7.98      19,100         6.0        $ 6.26           9,100        $ 5.80
     $11.30 to $14.37    28,300         6.7        $13.46          18,300        $13.95
     $23.37 to $34.39   406,000         9.8        $23.51              -            N.A
                       ---------                                ---------
          Total         453,400                                    27,400
                       =========                                =========
</TABLE>

NOTE 8.  COMMITMENTS AND CONTINGENCIES

     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.  The maximum liability for health care claims under
the stop-loss agreement is $75,000 per claim.  The maximum liability for
workman's compensation under the stop-loss agreement is $400,000 per claim.

                                   -55-



     On March 10, 2003, we announced a plan to repurchase up to 250,000
shares, or 2.6%, of our common stock in open market transactions.  The
repurchases may be made from time to time depending on market conditions and
availability of funds.  The repurchases are to be made with our cash.  We did
not purchase any shares of our common stock pursuant to this stock repurchase
program during 2004.  During 2003, we purchased 180,000 shares of our common
stock pursuant to this stock repurchase program.

     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.


NOTE 9.  RELATED PARTY TRANSACTIONS

     The three principal stockholders of the Company, through their
affiliates, control the ownership and management of a shopping center directly
adjacent to the Atlantis (the "Shopping Center").  The Shopping Center
occupies 18.7 acres and consists of approximately 213,000 square feet of
retail space.  The Company currently rents various spaces totaling
approximately 7,700 square feet in the Shopping Center which it uses as office
space and paid rent of approximately $67,200 plus common area expenses in
2004.  The Company paid rent of approximately $56,000 and $48,400 plus common
area expenses in 2003 and 2002, respectively.

     In addition, a new driveway that is being shared between the Atlantis and
the Shopping Center was completed on September 30, 2004.  As part of this
project, in January 2004, the Company leased a 37,368 square-foot corner
section of the Shopping Center for a minimum lease term of 15 years at an
annual rent of $300,000, subject to increase every 60 months based on the
Consumer Price Index.  The Company has begun paying rent to the Shopping
Center.  The Company also uses part of the common area of the Shopping Center
and pays its proportional share of the common area expense of the Shopping
Center. The Company has the option to renew the lease for 3 five-year terms,
and at the end of the extension periods, the Company has the option to
purchase the leased section of the Shopping Center at a price to be determined
based on an MAI Appraisal.  The leased space is being used by the Company for
pedestrian and vehicle access to the Atlantis, and the Company may use a
portion of the parking spaces at the Shopping Center. The total cost of the
project was $2.0 million; we were responsible for two thirds of the total
cost, or $1.35 million. The Company paid approximately $75,800 plus common
area charges in 2004 for its leased driveway space at the Shopping Center.

     On September 23, 2003, the Company entered into an option agreement with
an affiliate of its controlling stockholders to purchase property in South
Reno for development of a new hotel casino.  Commencement of any development
of the property will require completion of property due diligence and receipt
of numerous approvals, including master plan changes and zoning changes,
neither of which can be assured.  The Company, through the current property
owner, has filed an application with the City of Reno for both master plan and
zoning changes for 13 acres of the property. On January 20, 2005, the City of
Reno Planning Commission approved our application for zoning change on the
property. The Reno City Council and regional governing authorities must next
approve the application.



                                   -56-



     The Company is currently leasing billboard advertising space from
affiliates of its controlling stockholders for a total annual cost $53,000 in
2004 and $54,000 in 2003.  There were no billboard advertising costs in 2002.

     The Company is currently renting office and storage space from a company
affiliated with Monarch's controlling stockholders and pays annual rent of
approximately $27,900 for these spaces for each of the years 2004, 2003 and
2002.

     During 2002, the Company incurred one-time expenses of approximately
$228,000 for legal, accounting, printing and road show costs associated with a
secondary stock offering by principal stockholders.


NOTE 10.  SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

<TABLE>
<CAPTION>
                                                            2004
                            ---------------------------------------------------------------------
                             1st Quarter   2nd Quarter   3rd Quarter   4th Quarter      Total
                            ------------- ------------- ------------- ------------- -------------
<S>                         <C>           <C>           <C>           <C>           <C>
Net revenues .............  $ 30,485,978  $ 32,714,001  $ 35,060,753  $ 31,196,158  $129,456,890
Operating expenses .......  $ 25,741,608  $ 25,821,311  $ 26,250,312  $ 25,370,018  $103,183,249
Income from operations ...  $  4,744,370  $  6,892,690  $  8,810,441  $  5,826,140  $ 26,273,641
Net income ...............  $  2,758,245  $  4,352,013  $  5,552,438  $  3,863,744  $ 16,526,440
Income per share of
  common stock
    Basic ................        $ 0.30        $ 0.46        $ 0.59        $ 0.41        $ 1.76
    Diluted* .............        $ 0.29        $ 0.46        $ 0.59        $ 0.41        $ 1.76

*Difference due to rounding.
</TABLE>

<TABLE>
<CAPTION>
                                                            2003
                            ---------------------------------------------------------------------
                             1st Quarter   2nd Quarter   3rd Quarter   4th Quarter      Total
                            ------------- ------------- ------------- ------------- -------------
<S>                         <C>           <C>           <C>           <C>           <C>
Net revenues .............  $ 27,164,928  $ 29,075,070  $ 31,446,693  $ 28,263,822  $115,950,513
Operating expenses .......  $ 23,649,979  $ 24,863,622  $ 25,260,680  $ 24,966,879  $ 98,741,160
Income from operations ...  $  3,514,949  $  4,211,448  $  6,186,013  $  3,296,943  $ 17,209,353
Net income ...............  $  1,837,927  $  2,331,109  $  3,665,814  $  1,771,073  $  9,605,923
Income per share of
  common stock
    Basic ................        $ 0.19        $ 0.25        $ 0.39        $ 0.19        $ 1.02
    Diluted ..............        $ 0.19        $ 0.25        $ 0.39        $ 0.19        $ 1.02
</TABLE>
















                                   -57-



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
        ACCOUNTING AND FINANCIAL DISCLOSURE

     None.


ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

     We maintain disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our Exchange Act reports
is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is
accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow for timely
decisions regarding required disclosure.

     As of the end of the period covered by this report (the "Evaluation
Date"), we carried out an evaluation, under the supervision and with the
participation of our management, including our Chief Executive Officer and our
Chief Financial Officer, of the effectiveness of the design and operation of
our disclosure controls and procedures.  Based on the foregoing, our Chief
Executive Officer and Chief Financial Officer concluded that, as of the
Evaluation Date, our disclosure controls and procedures were effective at the
reasonable assurance level.

     Our management does not expect that our disclosure controls and
procedures or our internal controls over financial reporting will prevent all
error and all fraud.  In designing and evaluating disclosure controls and
procedures, management recognizes that any controls and procedures, no matter
how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management necessarily is
required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that
all control issues and instances of fraud, if any, have been detected.  These
inherent limitations include the realities that judgments in decision-making
can be faulty and that breakdowns can occur because of simple error or
mistake. Additionally, controls can be circumvented by the individual acts of
some persons, by collusion of two or more people, or by management override of
a control.  The design of a control system is also based upon certain
assumptions about the likelihood of future events, there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions; over time, controls may become inadequate because of
changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate.  Because of the inherent limitations in a cost-
effective control system, misstatements due to error or fraud may occur and
may not be detected.

Internal Control Over Financial Reporting

     There has been no change in our internal controls over financial
reporting during the year ended December 31, 2004 that has materially
affected, or is reasonably likely to materially affect, our internal control
over financial reports.


                                   -58-



     We are in the process of our compliance efforts mandated by Section 404
of the Sarbanes-Oxley Act of 2002.  As we have done our due diligence in
trying to understand the requirements and corresponding work necessary to
successfully document our system of internal controls to the standards and
satisfaction of third parties, we have encountered egregious estimates of
time, dollars, outside consultant fees, and volumes of paperwork.
As our implementation has progressed, we have yet to realize any control,
operations or governance improvements or benefits.  Additionally, and most
importantly, the estimated potential cost to our shareholders in relation to
the benefits, or even potential benefits, is unconscionable.  We believe that
these additional costs and expenses will merely confirm the existence of an
already effective and functioning control system that already conforms with a
recognized system of internal controls.

     Although we intend to diligently pursue implementation and compliance
with the Section 404 requirements, we do not believe it is in our
shareholders' best interests to incur unnecessary outsized costs in this
effort.  As we are a single location company with an extremely involved,
hands-on senior management group in a highly regulated industry with
significant insider ownership, the potential benefits to be derived from the
Section 404 requirements are believed to be minimal.  Consequently, we will
make every effort internally to comply with the Section 404 requirements but
will minimize what we believe to be the unreasonable and unnecessary expense
of retaining outside third parties to assist in this effort.

     As a result of this cautioned approach and the complexity of compliance,
there is a risk that, notwithstanding the best efforts of our management
group, we may fail to adopt sufficient internal controls over financial
reporting that are in compliance with the Section 404 requirements.


                                   PART III


ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     This information is incorporated by reference from the Company's Proxy
Statement to be filed with the Commission in connection with the Annual
Meeting of Stockholders to be held on May 26, 2005.


ITEM 11. EXECUTIVE COMPENSATION

     This information is incorporated by reference from the Company's Proxy
Statement to be filed with the Commission in connection with the Annual
Meeting of Stockholders to be held on May 26, 2005.












                                   -59-



ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Equity Compensation Plan Information.

<TABLE>
<CAPTION>

Plan Category            Number of securities   Weighted-average       Number of securities
                         to be issued upon      exercise price of      remaining available
                         exercise of            outstanding options,   for future issuance
                         outstanding options,   warrants and rights    under equity
                         warrants and rights                           compensation plans
                                                                       (excluding securities
                                                                       reflected in column (a))
                         (a)                    (b)                    (c)
---------------------    --------------------   --------------------   ------------------------
<C>                      <C>                    <C>                    <C>
Equity compensation
plans approved by
security holders <F1>          453,400                 $22.15                 176,651

Equity compensation
plans not approved                  -                      -                       -
by security holders
                         --------------------   --------------------   ------------------------
Total                          453,400                 $22.15                 176,651

<F1> Includes the 1993 Directors' Stock Option Plan, 1993 Employee Stock Option Plan and 1993
Executive Long-Term Incentive Plan, as amended.
</TABLE>

     Additional information is incorporated by reference from the Company's
Proxy Statement to be filed with the Commission in connection with the Annual
Meeting of Stockholders to be held on May 26, 2005.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     This information is incorporated by reference from the Company's Proxy
Statement to be filed with the Commission in connection with the Annual
Meeting of Stockholders to be held on May 26, 2005.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

     This information is incorporated by reference from the Company's Proxy
Statement to be filed with the Commission in connection with the Annual
Meeting of Stockholders to be held on May 26, 2005.

                                   PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

     (a)  1. Financial Statements

             Included in Part II of this report:

             Report of Independent Registered Public Accounting Firm - Ernst &
              Young LLP

             Report of Independent Registered Public Accounting Firm -
              Deloitte & Touche LLP

             Consolidated Statements of Income for the years ended
             December 31, 2004, 2003, and 2002.

                                   -60-



             Consolidated Balance Sheets at December 31, 2004, and 2003.

             Consolidated Statements of Stockholders' Equity for the years
             ended December 31, 2004, 2003, and 2002.

             Consolidated Statements of Cash Flows for the years ended
             December 31, 2004, 2003, and 2002.

             Notes to Consolidated Financial Statements.


          2. Financial Statements Schedules

                       VALUATION AND QUALIFYING ACCOUNTS

<TABLE>
<CAPTION>
                                Balance at   Charged to                             Balance
                                beginning    costs and                              at end
Year ended December 31,         of year      expenses     Deductions<F1> Other      of year
-----------------------         ----------   ----------   ----------     -----     ----------
<C>                             <C>          <C>          <C>            <C>       <C>
2002
Allowance for doubtful
  accounts...................      925,083      634,934     (672,052)       -         887,965
2003
Allowance for doubtful
  accounts...................      887,965      742,407     (599,754)       -       1,030,618
2004
Allowance for doubtful
  Accounts...................    1,030,618      394,065     (624,000)       -         800,683
</TABLE>

<F1> The Company reviews receivables monthly and accordingly adjusts the
allowance for doubtful accounts monthly.  The Company records actual
uncollectible write-offs annually.  The amount charged to Costs and Expenses
reflects the bad debt expense recorded in the consolidated statement of
income, while the amount recorded for Deductions reflects the adjustment to
actual allowance for doubtful accounts reserve at the end of the period.






















                                   -61-



     (b)     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.

      3.05  Amendment to Bylaws of Monarch Casino & Resort, Inc. adopted
            January 24, 1995 is filed as an exhibit to this Form 10-K.

      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 is incorporated herein by reference to the
            Company's Form 10-K report (SEC File 0-022088) for the fiscal year
            ended December 31,1998, Item 14(c), Exhibit 4.02.

      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


                                   -62-



            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.

     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 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 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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1998, Item 14(c), Exhibit
            10.05.

     10.06  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.

     10.07  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.

     10.08  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

                                   -63-



            0-22088) for the fiscal year ended December 31, 1995, Item
            14(a)(3), Exhibit 10.23.

     10.09  Business Loan Agreement between Golden Road Motor Inn, Inc. and
            Colonial Bank, dated November 17, 1999; Promissory Note by Golden
            Road Motor Inn, Inc. in favor of Colonial Bank, dated November 17,
            1999; Commercial Guaranty issued by John Farahi in favor of
            Colonial Bank, dated November 17, 1999; Commercial Guaranty issued
            by Bahram Farahi in favor of Colonial Bank, dated November 17,
            1999; and Commercial Guaranty issued by Ben Farahi, dated
            November 17, 1999 is incorporated herein by reference to the
            Company's Form 10-K report (SEC File 0-22088) for the fiscal year
            ended December 31, 1999, Item 14(c), Exhibit 10.14.

     10.10  Schedule to Master Loan Agreement, dated as of April 1, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.15.

     10.11  Schedule to Master Loan Agreement, dated as of April 19, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.16.

     10.12  Schedule to Master Loan Agreement, dated as of May 5, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.17.

     10.13  Schedule to Master Loan Agreement, dated as of May 24, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.18.

     10.14  Schedule to Master Loan Agreement, dated as of June 23, 1999;
            Master Loan Agreement, dated as of October 3, 1998; and
            Guaranties, dated as of September 9, 1998, by and among Golden

                                   -64-



            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.19.

     10.15  Agreement dated November 3, 1999 between Golden Road Motor Inn,
            Inc. and First Security Leasing Company of Nevada is incorporated
            herein by reference to the Company's Form 10-Q report (SEC File
            0-22088) for the fiscal quarter ended September 30, 2000, Item
            6(a), Exhibit 10.01.

     10.16  Agreement dated November 3, 1999 between Golden Road Motor Inn,
            Inc. and First Security Leasing Company of Nevada is incorporated
            herein by reference to the Company's Form 10-Q report (SEC File
            0-22088) for the fiscal quarter ended September 30, 2000, Item
            6(a), Exhibit 10.02.

     10.17  Credit Agreement, dated as of February 20, 2004, among Golden Road
            Motor Inn, Inc. as Borrower, Monarch Casino & Resort, Inc., as
            Guarantor, 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 March 8, 2004, Exhibit 99.1.

     10.18  Lease Agreement and Option to Purchase dated as of January 29,
            2004, between Golden Road Motor Inn, Inc. as Lessee and Biggest
            Little Investments, L.P. as Lessor is incorporated herein by
            reference to the Company's Form 10-K (SEC File 0-22088) dated
            March 11, 2004, Exhibit 10.18.

     10.19  Purchase Option Agreement dated as of September 15, 2003 between
            South Hills Investment Company as Seller and Monarch Casino and
            Resort, Inc. as Buyer is incorporated herein by reference to the
            Company's Form 10-K (SEC File 0-22088) dated March 11, 2004,
            Exhibit 10.19.

     21.01  Amended and Restated List of Subsidiaries of Monarch Casino &
            Resort, Inc. is incorporated herein by reference to the Company's
            Form 10-K report (SEC File 0-22088) for the fiscal year ended
            December 31, 1999, Item 14(c), Exhibit 21.01.

     23.1   Consent of Independent Registered Public Accounting Firm

     23.2   Consent of Deloitte & Touche LLP

     31.1   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002

     31.2   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002

     32.1   Certification pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed
            as an exhibit to this Form 10-K.

     32.2   Certification pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed
            as an exhibit to this Form 10-K.

                                   -65-



                                  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 15, 2005                   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 15, 2005
     ------------------ Chief Executive Officer (Principal
     John Farahi        Executive Officer) and Director

     /S/ BOB FARAHI     Co-Chairman of the Board of Directors,  March 15, 2005
     ------------------ President, and Director
     Bob Farahi

     /S/ BEN FARAHI     Co-Chairman of the Board of Directors,  March 15, 2005
     ------------------ Secretary, Treasurer, Chief Financial
     Ben Farahi         Officer (Principal Financial Officer
                        and Principal Accounting Officer) and
                        Director

     /S/ CRAIG. F.
         SULLIVAN       Director                                March 15, 2005
     ------------------
     Craig F. Sullivan

     /S/ RONALD R.
         ZIDECK         Director                                March 15, 2005
     ------------------
     Ronald R. Zideck

     /S/ CHARLES W.
         SCHARER        Director                                March 15, 2005
     ------------------
     Charles W. Scharer
</TABLE>

                                   -66-



                                                                   EXHIBIT
31.1

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ben Farahi, Chief Financial Officer of Monarch Casino & Resort, Inc.,
certify that:

1. I have reviewed this annual report on Form 10-K of Monarch Casino & Resort,
   Inc., a Nevada Corporation;

2. Based on my knowledge, this annual report does not contain any untrue
   statement of a material fact or omit to state a material fact necessary to
   make the statements made, in light of the circumstances under which such
   statements were made, not misleading with respect to the period covered by
   this report;

3. Based on my knowledge, the financial statements, and other financial
   information included in this annual report, fairly present in all
   material respects the financial condition, results of operations and cash
   flows of the registrant as of, and for, the periods presented in this
   report;

4. The registrant's other certifying officer and I are responsible for
   establishing and maintaining disclosure controls and procedures (as
   defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
   and have:
     a) designed such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under our
        supervision, to ensure that material information relating to the
        registrant, including its consolidated subsidiaries, is made
        known to us by others within those entities, particularly during
        the period in which this report is being prepared;
     b) evaluated the effectiveness of the registrant's disclosure controls
        and procedures and presented in this report our conclusions about the
        effectiveness of the disclosure controls and procedures, as of the
        end of the period covered by this report based on such evaluation; and
     c) disclosed in this report any change in the registrant's internal
        control over financial reporting that occurred during the registrant's
        fourth fiscal quarter that has materially affected, or is reasonably
        likely to materially affect, the registrant's internal control over
        financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on
   our most recent evaluation of internal control and reporting, to the
   registrant's auditors and the audit committee of registrant's board of
   directors (or persons performing the equivalent functions):

     a) all significant deficiencies and material weaknesses in the design or
        operation of internal control over financial reporting which are
        reasonably likely to adversely affect the registrant's ability to
        record, process, summarize and report financial information; and
     b) any fraud, whether or not material, that involves management or other
        employees who have a significant role in the registrant's internal
        control over financial reporting.

Date: March 15, 2005

By: /s/ Ben Farahi
    ---------------
        Ben Farahi
        Chief Financial Officer, Secretary and Treasurer


                                   -67-



                                                                  EXHIBIT 31.2

I, John Farahi, Chief Executive Officer of Monarch Casino & Resort, Inc.,
certify that:

1. I have reviewed this annual report on Form 10-K of Monarch Casino & Resort,
   Inc., a Nevada Corporation;

2. Based on my knowledge, this annual report does not contain any untrue
   statement of a material fact or omit to state a material fact necessary to
   make the statements made, in light of the circumstances under which such
   statements were made, not misleading with respect to the period covered by
   this report;

3. Based on my knowledge, the financial statements, and other financial
   information included in this annual report, fairly present in all
   material respects the financial condition, results of operations and cash
   flows of the registrant as of, and for, the periods presented in this
   report;

4. The registrant's other certifying officer and I are responsible for
   establishing and maintaining disclosure controls and procedures (as
   defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
   and have:
     a) designed such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under our
        supervision, to ensure that material information relating to the
        registrant, including its consolidated subsidiaries, is made
        known to us by others within those entities, particularly during
        the period in which this report is being prepared;
     b) evaluated the effectiveness of the registrant's disclosure controls
        and procedures and presented in this report our conclusions about the
        effectiveness of the disclosure controls and procedures, as of the
        end of the period covered by this report based on such evaluation; and
     c) disclosed in this report any change in the registrant's internal
        control over financial reporting that occurred during the registrant's
        fourth fiscal quarter that has materially affected, or is reasonably
        likely to materially affect, the registrant's internal control over
        financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on
   our most recent evaluation of internal control and reporting, to the
   registrant's auditors and the audit committee of registrant's board of
   directors (or persons performing the equivalent functions):

     a) all significant deficiencies and material weaknesses in the design or
        operation of internal control over financial reporting which are
        reasonably likely to adversely affect the registrant's ability to
        record, process, summarize and report financial information; and
     b) any fraud, whether or not material, that involves management or other
        employees who have a significant role in the registrant's internal
        control over financial reporting.


Date: March 15, 2005

By: /s/ John Farahi
    ---------------
        John Farahi
        Chief Executive Officer




                                   -68-



                                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.

      3.05  Amendment to Bylaws of Monarch Casino & Resort, Inc. adopted
            January 24, 1995 is filed as an exhibit to this Form 10-K.

      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 is incorporated herein by reference to the
            Company's Form 10-K report (SEC File 0-022088) for the fiscal year
            ended December 31,1998, Item 14(c), Exhibit 4.02.

      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.


                                   -69-



     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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1998, Item 14(c), Exhibit
            10.05.

     10.06  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.

     10.07  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.

     10.08  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.

     10.09  Business Loan Agreement between Golden Road Motor Inn, Inc. and
            Colonial Bank, dated November 17, 1999; Promissory Note by Golden
            Road Motor Inn, Inc. in favor of Colonial Bank, dated November 17,
            1999; Commercial Guaranty issued by John Farahi in favor of
            Colonial Bank, dated November 17, 1999; Commercial Guaranty issued
            by Bahram Farahi in favor of Colonial Bank, dated November 17,
            1999; and Commercial Guaranty issued by Ben Farahi, dated
            November 17, 1999 is incorporated herein by reference to the
            Company's Form 10-K report (SEC File 0-22088) for the fiscal year
            ended December 31, 1999, Item 14(c), Exhibit 10.14.

     10.10  Schedule to Master Loan Agreement, dated as of April 1, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.15.

     10.11  Schedule to Master Loan Agreement, dated as of April 19, 1999;
            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.,


                                   -70-



            John Farahi, Bahram Farahi and Behrouz Farahi as guarantors, and
            U.S. Bank Leasing and Financial as Lender is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.16.

     10.12  Schedule to Master Loan Agreement, dated as of May 5, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.17.

     10.13  Schedule to Master Loan Agreement, dated as of May 24, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.18.

     10.14  Schedule to Master Loan Agreement, dated as of June 23, 1999;
            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 is incorporated herein
            by reference to the Company's Form 10-K report (SEC File 0-22088)
            for the fiscal year ended December 31, 1999, Item 14(c),
            Exhibit 10.19.

     10.15  Agreement dated November 3, 1999 between Golden Road Motor Inn,
            Inc. and First Security Leasing Company of Nevada is incorporated
            herein by reference to the Company's Form 10-Q report (SEC File
            0-22088) for the fiscal quarter ended September 30, 2000, Item
            6(a), Exhibit 10.01.

     10.16  Agreement dated November 3, 1999 between Golden Road Motor Inn,
            Inc. and First Security Leasing Company of Nevada is incorporated
            herein by reference to the Company's Form 10-Q report (SEC File
            0-22088) for the fiscal quarter ended September 30, 2000, Item
            6(a), Exhibit 10.02.

     10.17  Credit Agreement, dated as of February 20, 2004, among Golden Road
            Motor Inn, Inc. as Borrower, Monarch Casino & Resort, Inc., as
            Guarantor, 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 March 8, 2004, Exhibit 99.1.

      10.18  Lease Agreement and Option to Purchase dated as of January 29,
            2004, between Golden Road Motor Inn, Inc. as Lessee and Biggest
          Little Investments, L.P. as Lessor is incorporated herein by reference to the
            Company's Form 10-K (SEC File 0-22088) dated March 11, 2004, Exhibit 10.18.

     10.19  Purchase Option Agreement dated as of September 15, 2003 between
            South Hills Investment Company as Seller and Monarch Casino and
            Resort, Inc. as Buyer is incorporated herein by reference to the
            Company's Form 10-K (SEC File 0-22088) dated March 11, 2004, Exhibit 10.19.

     21.01  Amended and Restated List of Subsidiaries of Monarch Casino &
            Resort, Inc. is incorporated herein by reference to the Company's
            Form 10-K report (SEC File 0-22088) for the fiscal year ended
            December 31, 1999, Item 14(c), Exhibit 21.01.




                                   -71-



     23.1   Consent of Independent Registered Public Accounting Firm

     23.2   Consent of Deloitte & Touche LLP

     31.1   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002

     31.2   Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002

     32.1   Certification pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

     32.2   Certification pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

</TABLE>












































                                   -72-



EXHIBIT 23.1








        CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the incorporation by reference in the Registration Statement
Nos. 333-85412, 333-85418 and 333-85420 pertaining to the Employees Savings
Plans of  Monarch Casino & Resort, Inc. of our report dated February 11, 2005,
with respect to the Consolidated Financial Statements and schedules of Monarch
Casino & Resort, Inc. included in the 2004 Annual Report on Form 10-K for the
year ended December 31, 2004.



                                                         /s/ Ernst & Young LLP

Las Vegas, Nevada
March 15, 2005




































                                   -73-







EXHIBIT 23.2








CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     We consent to the incorporation by reference in Registration Statement
Nos. 333-85412, 333-85418 and 333-85420 of Monarch Casino & Resort, Inc., on
Form S-8 of our report dated February 18, 2003, appearing in this Annual
Report on Form 10-K of Monarch Casino & Resort, Inc., for the year ended
December 31, 2004.


/s/ Deloitte & Touche LLP

Reno, Nevada
March 11, 2005






































                                   -74-



EXHIBIT 32.1

                       CERTIFICATION PURSUANT TO
                        18 U.S.C. SECTION 1350,
                         AS ADOPTED PURSUANT TO
             SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


     In connection with the Annual Report on Form 10-K of Monarch Casino &
Resort, Inc., (the "Company") for the year ended December 31, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, John Farahi, Chief Executive Officer of the Company, certify, pursuant to
and for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:

         1. To the best of my knowledge, the Report fully complies with the
            requirements of section 13(a) or 15(d) of the Securities Exchange
            Act of 1934; and

         2. To the best of my knowledge, the information contained in the
            Report fairly presents, in all material respects, the financial
            condition of the Company as of the dates indicated and result of
            operations of the Company for the periods indicated.




                                    /S/ JOHN FARAHI
                                    ---------------
                                        John Farahi
                                        Chief Executive Officer

                                        March 15, 2005

























                                   -75-



EXHIBIT 32.2

                        18 U.S.C. SECTION 1350,
                         AS ADOPTED PURSUANT TO
              SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report on Form 10-K of Monarch Casino & Resort,
Inc., (the "Company") for the year ended December 31, 2004 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, Ben
Farahi, Chief Financial Officer, Secretary and Treasurer of the Company,
certify, pursuant to and for purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

      1. To the best of my knowledge, the Report fully complies with the
         requirements of section 13(a) or 15(d) of the Securities Exchange Act
         of 1934; and

      2. To the best of my knowledge, the information contained in the Report
         fairly presents, in all material respects, the financial condition of
         the Company as of the dates indicated and result of operations of the
         Company for the periods indicated.




                                    /S/ BEN FARAHI
                                    --------------
                                        BEN FARAHI
                                        Chief Financial Officer, Secretary and
                                        Treasurer

                                        March 15, 2005




























                                   -76-