--------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ----------------------

                                    FORM 10-Q

 (Mark One)
      X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     ---                      EXCHANGE ACT OF 1934
                  For the Quarterly Period Ended June 30, 2000

                                       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 number 0-26922

                         COAST HOTELS AND CASINOS, INC.
             (Exact name of registrant as specified in its charter)

                   Nevada                               88-0345706
      (State or other jurisdiction of                (I.R.S. employer
       incorporation or organization)             identification number)

              4500 West Tropicana Avenue, Las Vegas, Nevada 89103
              (Address of principal executive offices) (Zip code)

                                 (702) 365-7000
              (Registrant's telephone number, including area code)

                                      None
              (Former name, former address and former fiscal year,
                         if changed since last report.)

    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
                                             ---  ---

                  APPLICABLE ONLY TO CORPORATE ISSUERS:
    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

    Shares of Common Stock outstanding as of August 14, 2000:  1,000

--------------------------------------------------------------------------------



<PAGE>


Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements.



                         COAST HOTELS AND CASINOS, INC.
               (A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                            CONDENSED BALANCE SHEETS
                    (amounts in thousands, except share data)



                                                    June 30,      December 31,
                                                      2000            1999
                                                   (unaudited)
                                                   -----------     ----------

                       ASSETS

 CURRENT ASSETS:
    Cash and cash equivalents...................... $   28,280     $   38,616
    Accounts receivable, net.......................      4,339          4,212
    Due from Coast Resorts.........................      3,588          2,863
    Other current assets...........................     17,860         16,126
                                                    ----------     ----------
    TOTAL CURRENT ASSETS...........................     54,067         61,817
 PROPERTY AND EQUIPMENT, net.......................    408,708        337,704
 OTHER ASSETS......................................     10,072          8,652
                                                    ----------     ----------
                                                    $  472,847     $  408,173
                                                    ==========     ==========
                  LIABILITIES AND
                STOCKHOLDER'S EQUITY

 CURRENT LIABILITIES:
    Accounts payable............................... $    9,470     $   11,738
    Accrued liabilities............................     32,939         32,781
    Construction accounts payable..................     11,998          8,304
    Current portion of long-term debt..............      5,515          2,473
                                                    ----------     ----------
    TOTAL CURRENT LIABILITIES......................     59,922         55,296
 LONG-TERM DEBT, less current portion..............    274,974        234,766
 DEFERRED INCOME TAXES.............................      4,601          4,222
 DEFERRED RENT.....................................     18,531         16,732
                                                    ----------     ----------
    TOTAL LIABILITIES..............................    358,028        311,016
                                                    ----------     ----------

 COMMITMENTS AND CONTINGENCIES
 STOCKHOLDER'S EQUITY:
    Common stock, $1.00 par value, 25,000 shares
     authorized, 1,000 shares issued and
     outstanding...................................          1              1
    Additional paid-in capital.....................     86,903         86,903
    Retained earnings..............................     27,915         10,253
                                                    ----------     ----------
    TOTAL STOCKHOLDER'S EQUITY.....................    114,819         97,157
                                                    ----------     ----------
                                                    $  472,847     $  408,173
                                                    ==========     ==========

    The  accompanying  notes are an integral part of these  condensed  financial
statements.


                                       1
<PAGE>


                         COAST HOTELS AND CASINOS, INC.
               (A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                       CONDENSED STATEMENTS OF OPERATIONS
        For the Three Months and Six Months Ended June 30, 2000 and 1999
                             (amounts in thousands)
                                   (unaudited)


<TABLE>
<CAPTION>
                                      Three Months Ended         Six Months Ended
                                           June 30,                  June 30,
                                     ----------------------    ----------------------
                                       2000          1999         2000         1999
                                     ---------    ---------    ---------    ---------
<S>                                <C>          <C>          <C>          <C>
OPERATING REVENUES:
   Casino.........................   $  68,742    $ 64,564    $ 142,766    $ 130,622
   Food and beverage .............      19,104      17,812       38,808       35,586
   Hotel..........................       8,192       7,455       16,506       15,333
   Other..........................       7,205       7,148       14,126       14,194
                                     ---------    --------    ---------    ---------
     GROSS OPERATING REVENUES.....     103,243      96,979      212,206      195,735
   Less:  promotional allowances..      (8,729)     (8,421)     (18,093)     (17,111)
                                     ---------    --------    ---------    ---------
     NET OPERATING REVENUES.......      94,514      88,558      194,113      178,624
                                     ---------    --------    ---------    ---------
OPERATING EXPENSES:
   Casino.........................      33,467      32,052       67,363       64,097
   Food and beverage..............      13,964      12,654       27,310       24,430
   Hotel..........................       3,198       3,214        6,363        6,255
   Other..........................       5,913       5,978       11,505       11,947
   General and administrative.....      15,939      15,567       32,221       30,991
   Pre-opening expenses...........         874          --        1,142           --
   Deferred rent..................         519         914        1,039        1,879
   Depreciation and amortization..       5,477       5,318       10,988       10,528
                                     ---------    --------    ---------    ---------
    TOTAL OPERATING EXPENSES......      79,351      75,697      157,931      150,127
                                     ---------    --------    ---------    ---------
OPERATING INCOME..................      15,163      12,861       36,182       28,497
                                     ---------    --------    ---------    ---------
OTHER INCOME (EXPENSES)
   Interest expense, net..........      (6,199)     (5,186)     (11,937)     (11,486)
   Interest capitalized...........       1,865          --        2,835           --
   Gain on disposal of assets.....           8          14            8           14
                                     ---------    --------    ---------    ---------
TOTAL OTHER INCOME (EXPENSES).....      (4,326)     (5,172)      (9,094)     (11,472)
                                     ---------    --------    ---------    ---------
INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEM................      10,837       7,689       27,088       17,025
                                     ---------    --------    ---------    ---------
Income tax provision..............       3,817       2,963        9,426        5,976
                                     ---------    --------    ---------    ---------
INCOME BEFORE EXTRAORDINARY ITEM..       7,020       4,726       17,662       11,049
                                     ---------    --------    ---------    ---------
Extraordinary item - loss on early
 retirement of debt, net of
 applicable income tax benefit
 ($14,543)........................          --          --           --      (27,007)
                                     ---------    --------    ---------    ---------
NET INCOME (LOSS).................   $   7,020    $  4,726    $  17,662    $ (15,958)
                                     =========    ========    =========    =========

</TABLE>

The accompanying notes are an integral part of these condensed financial
statements.


                                       2
<PAGE>


                         COAST HOTELS AND CASINOS, INC.
               (A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                       CONDENSED STATEMENTS OF CASH FLOWS
                 For the Six Months Ended June 30, 2000 and 1999
                             (amounts in thousands)
                                   (unaudited)


                                                             Six Months Ended
                                                                 June 30,
                                                         ----------------------
                                                           2000          1999
                                                         ---------    ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)..................................   $  17,662    $ (15,958)
                                                         ---------    ---------
    ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO
     NET CASH PROVIDED BY OPERATING ACTIVITIES:
     Depreciation and amortization....................      10,988       10,528
     Amortization of debt offering costs..............         526           --
     Deferred income taxes............................          54       (4,975)
     Deferred rent....................................       1,799        1,879
     Loss on early retirement of debt.................          --       41,550
     Other non-cash expenses..........................          57          300
     Changes in assets and liabilities:
      Net increase in accounts receivable and other
       assets.........................................      (3,895)      (3,402)
      Net increase (decrease) in accounts payable and
       accrued liabilities............................      (2,110)       4,867
                                                         ---------    ---------
   TOTAL ADJUSTMENTS..................................       7,419       50,747
                                                         ---------    ---------
   NET CASH PROVIDED BY OPERATING ACTIVITIES..........      25,081       34,789
                                                         ---------    ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures, net of amounts in accounts
    payable...........................................     (77,993)     (17,924)
   Proceeds from disposal of assets...................          51           18
                                                         ---------    ---------
   NET CASH USED IN INVESTING ACTIVITIES..............     (77,942)     (17,906)
                                                         ---------    ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from issuance of long-term debt, net of
    issuance costs....................................          --      167,960
   Early retirement of debt...........................          --     (223,017)
   Principal payments on long-term debt...............        (350)     (15,388)
   Proceeds from borrowings under bank line of credit.      43,600       59,000
   Repayments of borrowings under bank line of credit.          --      (10,000)
   Advances to Coast Resorts..........................        (725)      (5,924)
                                                         ---------    ---------
   NET CASH PROVIDED BY (USED IN) FINANCING
    ACTIVITIES........................................      42,525      (27,369)
                                                         ---------    ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS.............     (10,336)     (10,486)
CASH AND CASH EQUIVALENTS, at beginning of period.....      38,616       41,595
                                                         ---------    ---------
CASH AND CASH EQUIVALENTS, at end of period...........   $  28,280    $  31,109
                                                         =========    =========


The  accompanying  notes  are an  integral  part of  these  condensed  financial
statements.


                                       3
<PAGE>


                         COAST HOTELS AND CASINOS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1 - BACKGROUND INFORMATION AND BASIS OF PRESENTATION

Background Information

    Coast Hotels and Casinos, Inc. ("Coast Hotels" or the "Company") is a Nevada
corporation  and a wholly  owned  subsidiary  of  Coast  Resorts,  Inc.  ("Coast
Resorts"),  which is also a Nevada  corporation.  Coast Hotels owns and operates
three Las Vegas  hotel-casinos  and is developing a fourth.

     o    The Orleans  Hotel and Casino,  opened in  December  1996,  is located
          approximately  one and  one-half  miles west of the Las Vegas Strip on
          Tropicana Avenue.

     o    The Gold Coast Hotel and Casino,  opened in December  1986, is located
          approximately one mile west of the Las Vegas Strip on Flamingo Road.

     o    The Barbary  Coast Hotel and Casino,  opened in March 1979, is located
          on the Las Vegas Strip.

     o    On July 1,  1999,  we began  construction  of the  Suncoast  Hotel and
          Casino near  Summerlin  in the west end of the Las Vegas  valley.  The
          Suncoast,  with a construction  budget of $185 million, is expected to
          open in September 2000.

Basis of Presentation

    The accompanying  financial  statements are unaudited and have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial information and with Article 10 of Regulation S-X.  Accordingly,  they
do not include  all of the  information  and  footnotes  required  by  generally
accepted accounting principles for complete financial  statements.  In addition,
certain  amounts in the 1999  financial  statements  have been  reclassified  to
conform to the 2000 presentation.  The unaudited financial  statements should be
read in conjunction with the audited financial statements and footnotes included
in our annual  report on Form 10-K for the year ended  December 31, 1999. In the
opinion of management,  all adjustments and normal recurring accruals considered
necessary  for a fair  presentation  of the results for the interim  period have
been  included.  The  interim  results  reflected  in  the  unaudited  financial
statements are not necessarily indicative of expected results for the full year.


                                       4
<PAGE>


                         COAST HOTELS AND CASINOS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 2 - LONG-TERM DEBT
    Long-term  debt  consists of the  following as of June 30, 2000 and December
31, 1999:

                                                        June 30,   December 31,
                                                          2000         1999
                                                      (unaudited)
                                                      -----------   -----------
                                                            (in thousands)

9.5% senior subordinated notes due April 2009.....    $  175,000   $  175,000

$200.0 million reducing revolving credit
 facility due April 2004, collateralized by
 substantially all of the assets of Coast Hotels
 and Casinos, Inc.................................        98,600       55,000

13% first mortgage notes due December 2000,
 with interest payable semiannually on June 15
 and December 15..................................         1,960        1,960

8.6% note due August 11, 2007, payable in
 monthly installments of $26,667 principal
 plus interest on remaining principal balance,
 collateralized by 1980 Hawker aircraft...........         2,293        2,453

7.5% notes, payable in monthly installments of
 interest only, with all principal and any unpaid
 interest due December 31, 2001. The notes are
 uncollateralized and are payable to the former
 partners of Barbary Coast and Gold Coast.........         1,975        1,975

Other notes payable...............................           661          851
                                                      ----------   ----------
                                                         280,489      237,239
Less: current portion.............................         5,515        2,473
                                                      ----------   ----------
                                                      $  274,974   $  234,766
                                                      ==========   ==========


                                       5
<PAGE>


                         COAST HOTELS AND CASINOS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 2 - LONG-TERM DEBT (Continued)

    In March 1999,  we issued  $175.0  million  principal  amount of 9.5% senior
subordinated  notes with  interest  payable on April 1 and October 1,  beginning
October 1, 1999,  and entered  into a $75.0  million  senior  secured  revolving
credit  facility due 2004 to facilitate a  refinancing.  Availability  under the
credit facility was increased to $200.0 million in September 1999. Coast Resorts
is a  guarantor  of the  indebtedness  under  both  of  these  debt  agreements.
Borrowings under the credit facility bear interest,  at our option, at a premium
over  the  one-,  two-,  three-  or  six-month  London  Interbank  Offered  Rate
("LIBOR").  As of June  30,  2000  the  interest  rate  was  8.40%.  We  incur a
commitment  fee,  payable  quarterly  in arrears,  on the unused  portion of the
credit facility.  This variable fee is currently at the maximum rate of 0.5% per
annum times the average unused portion of the facility.

    With the proceeds from the senior  subordinated  notes and borrowings  under
the credit  facility,  we  repurchased  substantially  all of the $175.0 million
principal  amount  outstanding of 13% first mortgage notes and all $16.8 million
principal  amount  outstanding  of 10-7/8% first  mortgage notes and amended the
indenture  under which the 13% first  mortgage  notes were  issued to  eliminate
substantially all of its restrictive  covenants.  Approximately  $2.0 million in
principal  amount of the 13% first  mortgage  notes remains  outstanding  and is
governed by the terms of the amended indenture. We are required by the indenture
for the 9.5% senior  subordinated  notes to redeem the 13% first  mortgage notes
that remain outstanding no later than December 15, 2000 at a redemption price of
106.5% of the principal amount,  plus any accrued and unpaid interest.  Interest
on  the  remaining   $2.0  million  of  the  first  mortgage  notes  is  payable
semiannually  on June 1 and December 1. In connection with the repurchase of the
13% notes and the  10-7/8%  notes,  we  incurred  repurchase  premiums  of $31.0
million  and  $2.1  million,  respectively.  The  repurchase  premiums  and  the
write-offs  of  unamortized  debt  issuance  costs and original  issue  discount
resulted in an extraordinary  loss of $27.0 million in the six months ended June
30, 1999, net of applicable income tax benefit of $14.5 million.

    The  availability  under the $200.0 million credit  facility will be reduced
quarterly beginning in the fiscal quarter ending September 30, 2001. The initial
advance of $47.0 million under the credit  facility was used in connection  with
the  repurchase of the 13% first  mortgage  notes and the 10-7/8% first mortgage
notes.  Subsequent  advances  under the credit  facility may be used for working
capital,  general corporate  purposes,  construction of the Suncoast and certain
improvements  to our  existing  properties.  As of June 30,  2000,  we had $98.6
million outstanding under the credit facility.

    The $200.0  million  senior  secured  revolving  credit  facility  agreement
contains covenants that, among other things,  limit our ability to pay dividends
or make advances to Coast  Resorts,  to make certain  capital  expenditures,  to
repay certain existing indebtedness, to incur additional indebtedness or to sell
material  assets.  Additionally,  the loan  agreement  requires that we maintain
certain financial ratios with respect to leverage and fixed charge coverage.  We
are also subject to certain  covenants  associated with the indenture  governing
the $175.0 million principal amount of senior subordinated notes,  including, in
part,  limitations on certain restricted payments,  the incurrence of additional
indebtedness  and asset sales.  We believe  that,  at June 30, 2000,  we were in
compliance with all covenants and required ratios.


                                       6
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Results of Operations

   The following table sets forth, for the periods indicated,  certain financial
information regarding our results of operations:

<TABLE>
<CAPTION>
                                        Three Months Ended       Six Months Ended
                                             June 30,                June 30,
                                      ------------------------------------------------
                                         2000        1999        2000        1999
                                      ------------------------------------------------
                                          (in thousands)          (in thousands)
                                            (unaudited)             (unaudited)
<S>                                      <C>         <C>         <C>         <C>
Hotel-casino operations:
   Net operating revenues.................  $ 94,514   $ 88,558   $194,113   $178,624
   Operating expenses.....................    78,380     73,556    155,440    145,330
                                            --------   --------   --------   --------
 Operating income from hotel-casino
  operations..............................    16,134     15,002     38,673     33,294
Corporate expenses (1)....................       971      2,141      2,491      4,797
                                            --------   --------   --------   --------
Total operating income....................  $ 15,163   $ 12,861   $ 36,182   $ 28,497
                                            ========   ========   ========   ========
EBITDA, hotel-casino operations (2).......  $ 22,922   $ 20,596   $ 51,590   $ 44,335
                                            ========   ========   ========   ========
EBITDA, total (including corporate) (2)...  $ 22,033   $ 19,093   $ 49,351   $ 40,904
                                            ========   ========   ========   ========
</TABLE>

(1) Corporate  expenses include corporate general and  administrative  expenses,
    depreciation  and  amortization  and,  prior  to July 1,  1999,  land  lease
    expenses,  both cash and deferred, on the Suncoast land. Suncoast land lease
    expenses  subsequent to July 1, 1999, the date we commenced  construction of
    the Suncoast, are being capitalized during construction.

(2) "EBITDA" means earnings before interest, taxes, depreciation,  amortization,
    deferred (non-cash) rent expense and certain non-recurring items,  including
    pre-opening  expenses.  EBITDA should not be construed as an  alternative to
    operating  income or net income (as determined in accordance  with generally
    accepted  accounting  principles) as an indicator of the Company's operating
    performance,  or as an  alternative  to cash flows  generated by  operating,
    investing  and  financing  activities  (as  determined  in  accordance  with
    generally accepted accounting principles) as an indicator of cash flows or a
    measure of liquidity.  EBITDA is presented solely as supplemental disclosure
    because  management  believes  that it is a widely used measure of operating
    performance in the gaming industry. All companies do not calculate EBITDA in
    the same manner. As a result, EBITDA as presented here may not be comparable
    to a similarly titled measure presented by other companies.


                                       7
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Results of Operations (Continued)

Three Months Ended June 30, 2000 Compared to Three Months Ended June 30, 1999
and Six Months Ended June 30, 2000 Compared to Six Months Ended June 30, 1999

    Net revenues in the quarter ended June 30, 2000 were $94.5 million  compared
to $88.6 million in the same quarter in 1999, an increase of 6.7%, primarily due
to improved casino revenues at each of our  hotel-casinos.  Revenues were higher
at all three of our hotel-casino properties. Second quarter operating income was
$15.2 million compared to 1999 second quarter operating income of $12.9 million,
an  increase  of  17.9%.  Operating  income  improvements  at each of our  three
existing hotel-casinos were partially offset by $874,000 of pre-opening expenses
related to our newest hotel-casino,  the Suncoast,  which is expected to open in
the fall of 2000.  Net income  improved to $7.0 million in the second quarter of
2000, compared to net income of $4.7 million in the second quarter of 1999.

    In the six months ended June 30,  2000,  net  revenues  were $194.1  million
compared to $178.6 million in the first six months of 1999, an increase of 8.7%,
primarily  due to  improved  casino  revenues  at  each  of  our  hotel-casinos.
Operating  income was $36.2 million in the six-month  period ended June 30, 2000
compared  to $28.5  million  in the first six months of 1999.  Operating  income
improved at each of our three existing  hotel-casinos,  but was partially offset
by pre-opening expenses of $1.1 million related to the Suncoast.  Net income was
$17.7  million in the first six months of 2000  compared  to a net loss of $16.0
million in the first six months of 1999.  The loss in the first half of 1999 was
primarily due to a one-time charge of $27.0 million,  net of income tax benefit,
as a result of the early retirement of debt in March 1999. Net income before the
extraordinary charge was $11.0 million in the first six months of 1999.

    Casino.  Casino  revenues  in the  quarter  ended  June 30,  2000 were $68.7
million compared to $64.6 million in 1999, an increase of 6.5%.  Casino revenues
improved at all three of our  hotel-casinos,  primarily due to improved customer
wagering  volume in our table  games and slot  machine  areas.  In the first six
months of 2000,  casino revenues were $142.8 million  compared to $130.6 million
in the  first  six  months  of 1999,  an  increase  of 9.3%.  The  increase  was
attributable  to  improved  customer  wagering  volume  at  each  of  our  three
hotel-casinos.

    Casino  expenses in the quarter  ended June 30, 2000  increased by 4.4% over
the same quarter in 1999, primarily due to increased promotional expenses at the
Gold Coast and the Orleans.  The casino  operating margin improved in the second
quarter  of 2000 to  51.3%  compared  to 50.4% in the  second  quarter  of 1999.
Year-to-date,  casino  expenses  increased  by 5.1% over the first six months of
1999, and the casino  operating margin improved to 52.8% for the period compared
to 50.9% in the prior year.

    Food and  Beverage.  Food and beverage  revenues  were $19.1  million in the
quarter  ended June 30, 2000  compared to $17.8  million in 1999, an increase of
7.3%.  The increase was  primarily due to increased  customer  volume and higher
prices at the  Orleans'  new  buffet  that  opened  in May 1999,  as well as the
addition in April 2000 of two new restaurants at the Orleans. Year-to-date, food
and beverage  revenues were $38.8 million  compared to $35.6 million in 1999, an
increase of 9.1%. The increase was  attributable  to the expanded buffet and the
two new restaurants at the Orleans.

    Food and beverage expenses in the three months ended June 30, 2000 increased
by 10.4% over the same period in 1999,  primarily due to increased  staffing and
higher food costs in the Orleans' new buffet, as well as expenses related to the
two new restaurants that opened in the quarter. Year-to-date,  food and beverage
expenses  increased by 11.8%,  primarily  due to the new  restaurants  discussed
above.


                                       8
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Results of Operations (Continued)

    Hotel. Hotel room revenues were $8.2 million in  the three months ended June
30,  2000,  an increase of 9.9% over 1999  revenues of $7.5  million,  despite a
slight decrease in room occupancy percentages that we believe is attributable to
increased  competition  from three new  hotel-casinos  opened in 1999 on the Las
Vegas  Strip.  An  increase  in average  daily room rates from $50 in the second
quarter  of  1999  to $56 in the  second  quarter  of  2000  contributed  to the
increased revenues.  Hotel operating margins improved to 61.0% from 56.9% in the
second quarter of 1999 as revenues increased and expenses remained flat compared
to the prior year.

    In the first six months of 2000,  hotel revenues were $16.5 million compared
to $15.3  million in the same  period in 1999,  an  increase  of 7.7%.  A slight
decline in  occupancy  percentages  at each of our three hotels was offset by an
increase in the  average  daily room rates from $53 in the first half of 1999 to
$58 in the first half of 2000. Hotel operating  margins improved to 61.5% in the
first  half of 2000  compared  to 59.2% in the  first  half of 1999,  due to the
increased revenues and only a slight (1.7%) increase in expenses.

    Other.  Other revenues were  relatively  flat compared to the prior year, up
0.8% in the second quarter and down 0.5% in the first six months. Other expenses
declined 1.1% in the second  quarter and 3.7%  year-to-date,  primarily due to a
decline in entertainers'  fees at the Orleans as a result of fewer nights booked
in the showroom.

    General and  Administrative.  General and administrative  expenses increased
2.4% to $15.9 million in the second quarter of 2000 compared to $15.6 million in
1999. In the six months ended June 30, 2000, general and administrative expenses
were $32.2  million  compared to $31.0  million in the same  period in 1999,  an
increase of 4.0%.  The increases  were due, in part, to July 1999 wage increases
at our three hotel-casinos.  Additionally, an expansion completed in May 1999 at
the Orleans  resulted in higher utility costs and increased  staffing in several
ancillary  departments.  General and  administrative  expenses include cash rent
expense of $675,000  and $1.2  million in the second  quarters of 2000 and 1999,
respectively.  Cash rent was $1.4  million  in the first six  months of 2000 and
$2.3 million in the first six months of 1999. Cash rent is lower in 2000 because
rent  on  the  Suncoast  land  has  been  capitalized   since  July  1999,  when
construction of that project commenced.

    Pre-opening  Costs.  Pre-opening  costs  related to the  development  of the
Suncoast are expensed as incurred. These costs were $874,000 and $1.1 million in
the three months and six months ended June 30, 2000, respectively. There were no
pre-opening costs in the first six months of 1999.

    Deferred  Rent.  Deferred  rent in the second  quarter of 2000 was  $519,000
compared to $914,000 in the second quarter of 1999. Year-to-date,  deferred rent
was $1.0  million in 2000  compared  to $1.9  million in the first six months of
1999.  The decrease in deferred rent is due to the  capitalizing  of rent on the
Suncoast land described above.

    Depreciation and  Amortization.  Depreciation  and amortization  expense was
$5.5 million in the second  quarter of 2000 compared to $5.3 million in 1999. In
the six months ended June 30, 2000,  depreciation and  amortization  expense was
$11.0  million  compared to $10.5 million in the six months ended June 30, 1999.
The increases were primarily due to the addition of new equipment at each of our
hotel-casino properties.


                                       9
<PAGE>


Liquidity and Capital Resources

    Our  principal  sources of  liquidity  have  consisted  of cash  provided by
operating  activities and debt financing.  Cash provided by operating activities
was $25.1  million  in the six  months  ended June 30,  2000  compared  to $34.8
million in 1999.

    Cash used in investing  activities in the six months ended June 30, 2000 was
$77.9  million and was  primarily  for  capital  expenditures,  including  $65.2
million for the ongoing  construction of the Suncoast.  Our anticipated  capital
expenditures  for  2000  are  $162.8  million,   including  $149.9  million  for
construction of the Suncoast,  $9.7 million for maintenance capital expenditures
at our three  existing  hotel-casinos  and $3.2  million for  various  projects,
including new  restaurants at the Orleans and a remodeling of the bowling center
at the Gold Coast. Cash used in investing  activities in the first six months of
1999 was $17.9 million, primarily for capital expenditures.

    Cash  provided by financing  activities  was $42.5  million in the first six
months of 2000,  primarily  from  borrowings  under our $200.0  million  line of
credit.  In the first six months of 1999, cash used in financing  activities was
$27.4  million,  due primarily to a  refinancing  of our debt. In March 1999, we
issued $175.0 million  principal amount of 9.5% senior  subordinated  notes with
interest payable on April 1 and October 1 beginning  October 1, 1999 and entered
into a $75.0  million  senior  secured  revolving  credit  facility  due 2004 to
facilitate a refinancing.  Availability  under the credit facility was increased
to $200.0 million in September 1999.  Borrowings  under the credit facility bear
interest,  at our option,  at a premium over the one-, two-, three- or six-month
London Interbank Offered Rate ("LIBOR").  As of June 30, 2000, the interest rate
was 8.40%.  We incur a commitment  fee,  payable  quarterly  in arrears,  on the
unused  portion of the credit  facility.  This  variable fee is currently at the
maximum rate of 0.5% per annum times the average unused portion of the facility.

    With the proceeds from the senior  subordinated  notes and borrowings  under
the credit  facility,  we  repurchased  substantially  all of the $175.0 million
principal  amount  outstanding of 13% first mortgage notes and all $16.8 million
principal amount of 10-7/8% first mortgage notes and amended the indenture under
which the 13% first mortgage notes were issued to eliminate substantially all of
its restrictive covenants. Approximately $2.0 million in principal amount of the
13% first mortgage notes remains outstanding and is governed by the terms of the
amended  indenture.  We are required by the terms of the  indenture for the 9.5%
senior  subordinated  notes to redeem the 13% first  mortgage  notes that remain
outstanding  no later than December 15, 2000 at a redemption  price of 106.5% of
the principal amount,  plus any accrued and unpaid interest.  In connection with
the  repurchase of the 13% notes and the 10-7/8% notes,  we incurred  repurchase
premiums  of  $31.0  million  and $2.1  million,  respectively.  The  repurchase
premiums and the  write-offs of  unamortized  debt  issuance  costs and original
issue  discount  resulted  in an  extraordinary  loss of $27.0  million,  net of
applicable income tax benefit of $14.5 million.


                                       10
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Liquidity and Capital Resources (Continued)

    The availability under the $200.0 million credit facility will be reduced in
quarterly amounts beginning in the fiscal quarter ending September 30, 2001. The
initial  advance  of  $47.0  million  under  the  credit  facility  was  used in
connection  with the  repurchase of the 13% first mortgage notes and the 10-7/8%
first mortgage notes.  Subsequent advances under the credit facility may be used
for working capital,  general corporate purposes,  construction of the Suncoast,
and certain improvements to our existing properties. As of June 30, 2000, we had
$98.6 million outstanding under the $200.0 million credit facility.

    We believe that existing cash  balances,  operating  cash flow and available
borrowings  under the $200.0  million  credit  facility will provide  sufficient
resources to meet our debt and lease payment  obligations,  foreseeable  capital
expenditure   requirements   at  our  existing   properties  and   construction,
development and opening costs of the Suncoast.

Forward-Looking Statements

    Certain statements in this section and elsewhere in this Quarterly Report on
Form  10-Q  (as  well as  information  included  in  oral  statements  or  other
statements  made or to be made by us) constitute  "forward-looking  statements".
Such  forward-looking   statements  include  the  discussions  of  our  business
strategies   and   expectations    concerning   future   operations,    margins,
profitability, liquidity and capital resources. In addition, in certain portions
of this  10-Q,  the  words:  "anticipates",  "believes",  "estimates",  "seeks",
"expects",  "plans", "intends" and similar expressions,  as they relate to Coast
Hotels or our management,  are intended to identify forward-looking  statements.
Although we believe that such forward-looking  statements are reasonable, we can
give no assurance that any forward-looking  statements will prove to be correct.
Such forward-looking  statements involve known and unknown risks,  uncertainties
and  other  factors,  which  may  cause  the  actual  results,   performance  or
achievements of Coast Hotels to be materially different from any future results,
performance  or  achievements  expressed  or  implied  by  such  forward-looking
statements.  Such factors  include,  among  others,  the risks  associated  with
entering into a new venture and new construction,  competition and other planned
construction in Las Vegas,  government regulation related to the casino industry
(including  the  regulation of gaming in certain  jurisdictions,  such as Native
American  reservations  in the State of  California),  leverage and debt service
(including  sensitivity to fluctuations in interest rates),  occupancy rates and
average daily room rates in Las Vegas, the completion of infrastructure projects
in Las Vegas and  general  economic  and  business  conditions  which may impact
levels of disposable income of consumers and pricing of hotel rooms.


                                       11
<PAGE>


Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

    Market risk is the risk of loss  arising  from  adverse  changes  in  market
rates and prices,  such as interest rates,  foreign currency  exchange rates and
commodity  prices.  Our primary  exposure  to market risk is interest  rate risk
associated with our long-term debt. To date, we have not invested in derivative-
or  foreign  currency-based  financial  instruments.  We  attempt  to limit  our
exposure to interest rate risk by managing the mix of our  long-term  fixed-rate
borrowings and short-term borrowings under our revolving bank credit facility.


                                       12
<PAGE>


PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

       None.

Item 2.  Changes in Securities.

       None.

Item 3.  Defaults Upon Senior Securities.

       None.

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

       Not applicable.

Item 5.  Other Information.

       None.

Item 6.  Exhibits and Reports on Form 8-K:

(a)    Exhibits.

       27. Financial Data Schedule.

(b)    Reports on Form 8-K.

       None.


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<PAGE>


                                   SIGNATURES


    Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, the
Registrant  has duly caused this  Quarterly  Report on Form 10-Q to be signed on
its behalf by the undersigned thereunto duly authorized.


Date:  August 14, 2000                  COAST HOTELS AND CASINOS, INC., a Nevada
                                        corporation


                                        By:   /s/ Gage Parrish..
                                              ------------------
                                              Gage Parrish
                                              Vice President and Chief Financial
                                              Officer



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