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


                       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 March 31, 2002

                                       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 May 15, 2002: 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)

                                             March 31,     December
                                               2002           31,
                                            (unaudited)      2001
                                            -----------  -----------
                   ASSETS
CURRENT ASSETS:
  Cash and cash equivalents................  $  36,053   $  43,347
  Accounts receivable, net.................      6,251       6,367
  Due from Coast Resorts...................         --       5,464
  Other current assets.....................     21,414      18,950
                                            -----------  -----------
  TOTAL CURRENT ASSETS.....................     63,718      74,128
PROPERTY AND EQUIPMENT, net................    616,022     579,545
OTHER ASSETS...............................      9,453       7,807
                                            -----------  -----------
                                             $ 689,193   $ 661,480
                                            ===========  ===========
              LIABILITIES AND
            STOCKHOLDER'S EQUITY

CURRENT LIABILITIES:
  Accounts payable.........................  $  16,560   $  13,138
  Accrued liabilities......................     36,841      41,061
  Due to Coast Resorts.....................        247          --
  Construction accounts payable............     24,313      34,053
  Current portion of long-term debt........        162         148
                                            -----------  -----------
  TOTAL CURRENT LIABILITIES................     78,123      88,400
LONG-TERM DEBT, less current portion.......    394,716     369,376
DEFERRED INCOME TAXES......................     19,674      19,251
DEFERRED RENT..............................     24,712      23,868
                                            -----------  -----------
  TOTAL LIABILITIES........................    517,225     500,895
                                            -----------  -----------
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........................     85,064      73,681
                                            -----------  -----------
  TOTAL STOCKHOLDER'S EQUITY...............    171,968     160,585
                                            -----------  -----------
                                             $ 689,193   $ 661,480
                                            ===========  ===========

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 Ended March 31, 2002 and 2001
                             (amounts in thousands)
                                   (unaudited)

                                         Three Months Ended
                                              March 31,
                                       ----------------------
                                          2002         2001
                                       ----------   ----------
OPERATING REVENUES:
  Casino............................   $ 100,908    $  94,721
  Food and beverage.................      27,975       26,693
  Hotel.............................      10,089        9,945
  Other.............................       9,347        8,786
                                       ----------   ----------
    GROSS OPERATING REVENUES........     148,319      140,145
  Less:  promotional allowances.....     (13,244)     (12,597)
                                       ----------   ----------
    NET OPERATING REVENUES..........     135,075      127,548
                                       ----------   ----------

OPERATING EXPENSES:
  Casino............................      44,322       43,169
  Food and beverage.................      20,665       18,865
  Hotel.............................       3,985        3,783
  Other.............................       6,915        6,699
  General and administrative........      24,795       22,911
  Deferred rent.....................         844          884
  Depreciation and amortization.....       9,279        8,568
                                      -----------   ----------
    TOTAL OPERATING EXPENSES........     110,805      104,879
                                      -----------   ----------
OPERATING INCOME....................      24,270       22,669
                                      -----------   ----------
OTHER INCOME (EXPENSES):
  Interest expense, net.............      (7,170)      (7,981)
  Interest capitalized .............         588           62
  (Loss) gain on disposal of assets         (318)       1,534
                                      -----------   ----------
TOTAL OTHER INCOME (EXPENSES).......      (6,900)      (6,385)
                                      -----------   ----------
INCOME BEFORE INCOME TAXES..........      17,370       16,284
Income tax provision ...............       5,987        5,621
                                      -----------   ----------
NET INCOME..........................   $  11,383    $  10,663
                                      ===========   ==========

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 Three Months Ended March 31, 2002 and 2001
                             (amounts in thousands)
                                   (unaudited)

                                                       Three Months Ended
                                                            March 31,
                                                    -----------------------
                                                       2002          2001
                                                    ----------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income......................................  $  11,383    $  10,663
                                                    ----------   ----------
  ADJUSTMENTS TO RECONCILE NET INCOME TO
    NET CASH PROVIDED BY OPERATING ACTIVITIES:
    Depreciation and amortization.................      9,279        8,568
    Amortization of debt offering costs...........        277          294
    Loss (gain) on disposal of assets.............        318       (1,534)
    Deferred income taxes.........................        279          576
    Deferred rent.................................        844          884
    Changes in assets and liabilities:
      Net increase in accounts receivable and
        other assets..............................     (2,328)        (844)
      Net (decrease) increase in accounts payable
        and accrued liabilities...................       (798)        2,819
                                                    ----------   ----------
  TOTAL ADJUSTMENTS...............................      7,871       10,763
                                                    ----------   ----------
  NET CASH PROVIDED BY OPERATING ACTIVITIES.......     19,254       21,426
                                                    ----------   ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures, net of amounts in
    construction accounts payable.................    (56,707)     (13,234)
  Proceeds from sale of assets....................        903        9,415
                                                    ----------   ----------
  NET CASH USED IN INVESTING ACTIVITIES...........    (55,804)      (3,819)
                                                    ----------   ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of long-term debt
    including original issue premium, net of
    financing costs...............................    103,191       49,071
  Principal payments on long-term debt............       (146)        (463)
  Proceeds from borrowings under bank line of
    credit........................................     25,000        6,000
  Repayments of borrowings under bank line of
    credit........................................   (104,500)     (63,000)
  Payments from Coast Resorts.....................      5,711        5,045
                                                    ----------   ----------
  NET CASH PROVIDED BY (USED IN) FINANCING
    ACTIVITIES....................................     29,256       (3,347)
                                                    ----------   ----------
NET (DECREASE) INCREASE IN CASH AND CASH
  EQUIVALENTS.....................................     (7,294)      14,260
CASH AND CASH EQUIVALENTS, at beginning of period.     43,347       43,560
                                                    ----------   ----------
CASH AND CASH EQUIVALENTS, at end of period.......  $  36,053    $  57,820
                                                    ==========   ===========

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.  (the  "Company"  or "Coast  Hotels") is a
Nevada corporation and a wholly owned subsidiary of Coast Resorts,  Inc. ("Coast
Resorts"),  which is also a Nevada  corporation.  Coast  Hotels  was  formed  in
September 1995 and owns and operates the following  hotel-casinos  in Las Vegas,
Nevada:

o    The Orleans Hotel and Casino, which is located  approximately one mile west
     of the Las Vegas Strip on Tropicana Avenue.

o    Gold Coast Hotel and Casino,  which is located  approximately one mile west
     of the Las Vegas Strip on Flamingo Road.

o    The Suncoast Hotel and Casino,  which is located in the west end of the Las
     Vegas valley.

o    Barbary Coast Hotel and Casino, which is located on the Las Vegas Strip.

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.  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, 2001.  In the opinion of  management,  all  adjustments  and
normal recurring  accruals  considered  necessary for a fair presentation of the
results  for the  interim  periods  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 March 31, 2002 and December
31, 2001:
                                                    March 31,    December
                                                      2002          31,
                                                   (unaudited)     2001
                                                   ----------   ----------
                                                        (in thousands)
9.5% senior subordinated notes due April 2009,
  with interest payable semiannually on April 1
  and October 1, including original issue
  premium of $5,000 in 2002 and $0 in 2001......   $ 330,000    $ 225,000

Senior secured credit facility due September
  2004, collateralized by substantially all of
  the assets of Coast Hotels and Casinos, Inc...      64,500      144,000

Other notes payable.............................         378          524
                                                   ----------   ----------
                                                     394,878      369,524
Less: current portion...........................         162          148
                                                   ----------   ----------
                                                   $ 394,716    $ 369,376
                                                   ==========   ==========

     In March 1999, the Company 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 credit
facility due 2004 to  facilitate a  refinancing.  Availability  under the credit
facility was increased to $200.0 million in September 1999, subject to automatic
reductions in  availability  from September 2001 through June 2004, as described
below. 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").  The premium varies  depending on the Company's  ratio of total
debt to EBITDA and can vary  between 125 and 250 basis  points.  As of March 31,
2002,  the premium over LIBOR was 1.75% (175 basis points) and the interest rate
was 3.65%.  For the quarter ended March 31, 2002, the weighted  average interest
rate for the senior  secured  credit  facility was 3.62%.  The Company  incurs a
commitment  fee,  payable  quarterly  in arrears,  on the unused  portion of the
credit  facility.  This  variable fee is currently at a rate of 0.375% per annum
times the average unused portion of the facility.

     The  availability  under the senior secured credit  facility was reduced by
$6.0 million to $194.0  million on September 30, 2001, by $6.0 million to $188.0
million on December 31, 2001 and by $6.0 million to $182.0  million on March 31,
2002.  It will be reduced by an  additional  $6.0 million on June 30, 2002.  The
quarterly reduction will increase to $8.5 million on each of September 30, 2002,
December 31, 2002,  March 31, 2003 and June 30,  2003;  and to $11.5  million on
each of September 30, 2003, December 31, 2003, March 31, 2004 and June 30, 2004.
As of March 31, 2002, the Company had $117.5 million of  availability  under the
credit facility.

     On February 2, 2001, the Company issued $50.0 million additional  principal
amount of senior  subordinated  notes. The net proceeds of  approximately  $49.1
million were used to reduce borrowings under the senior secured credit facility.
On March 19, 2002, the Company issued $100.0 million additional principal amount
of senior  subordinated notes and received a $5.0 million original issue premium
in  connection  with the  issuance.  The net  proceeds of  approximately  $103.2
million were used to reduce borrowings under the credit facility. The notes that
were issued in 2001 and 2002 were issued under the same  indenture  and have the
same terms,  interest  rate and maturity  date as the $175.0  million  principal
amount of senior subordinated notes issued in 1999.

                                       5
<PAGE>

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

NOTE 2 - LONG-TERM DEBT (continued)

     The loan agreement  governing the senior secured credit  facility  contains
covenants  that,  among  other  things,  limit the ability of the Company 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 of the Company.  Additionally,  the loan
agreement  requires  that the Company  maintain  certain  financial  ratios with
respect to its leverage and fixed charge coverage.  The agreement was amended in
December  2001 and in March  2002 to  increase  the  amount of  certain  capital
expenditures  that may be made. The Company is also subject to certain covenants
associated  with  the  indenture   governing  the  senior   subordinated  notes,
including,  in part,  limitations on certain restricted payments, the incurrence
of additional  indebtedness  and asset sales. At March 31, 2002, the Company was
in compliance with all covenants and required ratios.

     On April 2, 2002, Coast Hotels entered into an interest rate swap agreement
with a member of the Company's bank group wherein $100.0 million notional amount
of the  Company's  fixed rate debt has been  converted to a floating  rate.  The
fixed rate paid to the Company is 5.77% and the  floating  rate paid to the bank
is based  on  six-month  LIBOR  and is set at 2.33%  for the six  months  ending
September  30, 2002.  The floating  rate will be adjusted on October 1, 2002 and
will be adjusted  each April 1 and October 1 until the swap  expires on April 1,
2009,  which  is  also  the  maturity  date  of the  $325.0  million  in  senior
subordinated notes.


                                       6
<PAGE>

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

NOTE 3 - PROMOTIONAL ALLOWANCES

     The  retail  value of hotel  accommodations  and  food and  beverage  items
provided to  customers  without  charge is included in gross  revenues  and then
deducted as promotional allowances,  to arrive at net revenues. The following is
a breakdown of these  complimentary  revenues  for the quarters  ended March 31,
2002 and 2001:
                                                March 31,
                                         -----------------------
                                            2002         2001
                                         ----------   ----------
                                             (in thousands)
  Complimentary revenues:
  Food and beverage....................  $  10,816    $  10,619
  Hotel................................      1,632        1,480
  Other................................        796          498
                                         ----------   ----------
  Promotional allowances...............  $  13,244    $  12,597
                                         ==========   ==========

     The estimated cost of providing these complimentary  services is as follows
for the quarters ended March 31, 2002 and 2001:

                                                March 31,
                                         -----------------------
                                            2002         2001
                                         ----------   ----------
                                             (in thousands)
  Food and beverage....................  $  10,745    $  10,885
  Hotel................................        674          566
                                         ----------   ----------
                                         $  11,419    $  11,451
                                         ==========   ==========

     The cost of promotional allowances has been allocated to expense as follows
for the quarters ended March 31, 2002 and 2001:

                                                March 31,
                                         -----------------------
                                            2002         2001
                                         ----------   ----------
                                             (in thousands)
  Casino...............................  $  10,723    $  10,433
  Other................................        696        1,018
                                         ----------   ----------
                                         $  11,419    $  11,451
                                         ==========   ==========


                                       7
<PAGE>

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

Critical Accounting Policies and Estimates

     o    We recognize revenue as net wins and losses occur in our casinos, upon
          the occupancy of our hotel rooms, upon the delivery of food,  beverage
          and other services,  and upon performance for  entertainment  revenue.
          Wagers  received on all  sporting  events are  recorded as a liability
          until the final outcome of the event when the payoffs,  if any, can be
          determined. Effective January 1, 2001, we adopted Emerging Issues Task
          Force Issue 00-22 (the  "Issue")  which  requires  cash  discounts and
          certain other cash incentives  related to gaming play be recorded as a
          reduction to gross casino revenues.

     o    We maintain an allowance for doubtful  accounts for  estimated  losses
          resulting  from  the  inability  of our  customers  to  make  required
          payments, which results in bad debt expense. We determine the adequacy
          of this  allowance  by  periodically  evaluating  individual  customer
          receivables and considering the customer's financial condition, credit
          history and current economic conditions. If the financial condition of
          customers  were to  deteriorate,  resulting in an  impairment of their
          ability to make payments, we may increase the allowances.

     o    We   maintain   accruals   for   health   and   workers   compensation
          self-insurance and slot club point redemption, which are classified as
          accrued  liabilities in the balance sheets.  We determine the adequacy
          of these accruals by periodically evaluating the historical experience
          and projected  trends related to these accruals.  If such  information
          indicates  that the accruals are  overstated or  understated,  we will
          adjust the  assumptions  utilized in the  methodologies  and reduce or
          provide for additional accruals as appropriate.

     o    We are  subject to various  claims and legal  actions in the  ordinary
          course of business. Some of these matters include personal injuries to
          customers and damage to customers'  personal assets. We estimate guest
          claims and accrue for such liability based on historical experience in
          accrued liabilities in the balance sheets.

     o    Pre-opening  costs  related to the  construction  of new  projects are
          expensed as incurred. There were no pre-opening costs during the three
          months ended March 31, 2002 and 2001.

     o    We have  entered  into  lease  agreements  where the  rental  payments
          increase on either a monthly or annual basis. We recognize the related
          rent  expense  on  the  straight-line  method  over  the  term  of the
          agreements.  Deferred  rent is  recorded to reflect the excess of rent
          expense over cash payments since the inception of the leases.


                                       8
<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:

                                                      Three Months Ended
                                                            March 31,
                                                    -----------------------
                                                       2002         2001
                                                    ----------   ----------
                                                        (in thousands)
                                                         (unaudited)

Net operating revenues............................  $ 135,075    $ 127,548
Operating expenses................................    110,805      104,879
                                                    ----------   ----------
Operating income .................................  $  24,270    $  22,669
                                                    ==========   ==========
Net income .......................................  $  11,383    $  10,663
                                                    ==========   ==========
EBITDA (1)........................................  $  34,393    $  32,121
                                                    ==========   ==========
Cash provided by operating activities.............  $  19,254    $  21,426
                                                    ==========   ==========
Cash used in investing activities.................  $ (55,804)   $  (3,819)
                                                    ==========   ==========
Cash provided by (used in) financing activities...  $  29,256    $  (3,347)
                                                    ==========   ==========

(1)"EBITDA" means earnings before interest, taxes,  depreciation,  amortization,
   deferred  (non-cash)  rent  expense,  other  non-cash  expenses  and  certain
   non-recurring items,  including  pre-opening expenses and gains and losses on
   disposal of equipment (for all periods  presented,  the only non-cash expense
   was deferred rent and the only  non-recurring  items were gains and losses on
   disposal of assets).  EBITDA is defined in our senior secured credit facility
   and in the  indenture  governing  our senior  subordinated  notes.  EBITDA is
   presented as  supplemental  disclosure  because the  calculation of EBITDA is
   necessary to determine  our  compliance  with certain  covenants  under these
   financing agreements and because management believes that it is a widely used
   measure of operating performance in the gaming industry. 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 our 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.  All companies do not calculate EBITDA in the same
   manner.  As a result,  EBITDA as presented  here may not be comparable to the
   similarly titled measures presented by other companies.

                                       9
<PAGE>

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

Three Months Ended March 31, 2002 Compared to Three Months Ended March 31, 2001

     In the quarter ended March 31, 2002, we experienced  increases in revenues,
operating income, net income and EBITDA,  primarily due to continued improvement
in revenues at the Suncoast, which opened in September 2000. Net revenues in the
first  quarter  were  $135.1  million  compared  to $127.5  million in 2001,  an
increase of 5.9%. Net operating revenues at the Gold Coast and the Barbary Coast
were  relatively  flat compared to last year,  but were down 7.0% at The Orleans
due to increased competition,  continued construction  disruption related to the
ongoing $150.0 million  expansion  project and lower hotel room occupancy levels
consistent  with the general  slowdown in tourism  after the  September 11, 2001
terrorist attacks. Operating income was $24.3 million in the quarter compared to
$22.7  million in 2000,  an  increase  of 7.1%.  Net  income  was $11.4  million
compared to 2001 first quarter net income of $10.7 million, an increase of 6.8%.
EBITDA was $34.4  million in the  quarter,  an  increase  of 7.1% over EBITDA of
$32.1 million for the first quarter of 2001.

     Casino. Casino revenues were $100.9 million in the three months ended March
31, 2002  compared to $94.7  million in the same period in 2001,  an increase of
6.5% due primarily to a 31.3%  increase at the Suncoast.  Gold Coast and Barbary
Coast casino revenues increased slightly in the quarter,  but casino revenues at
The Orleans declined 7.2% due to the reasons discussed above.

     Casino  expenses  increased  $1.2  million  (2.7%)  in the  first  quarter,
primarily  due to a 13.1%  increase  at the  Suncoast  because of the  increased
gaming activity there.

     Food and  Beverage.  Food and beverage  revenues  were $28.0 million in the
first quarter of 2002 compared to $26.7 million in 2001, an increase of 4.8% due
to  increases  at the  Suncoast  and at the Gold  Coast as a result  of its new,
expanded buffet.  The increases were partially offset by a 7.7% decrease in food
and beverage  revenues at The Orleans,  in line with an overall 7.0% decrease in
revenues at The Orleans discussed above.  Food and beverage  expenses  increased
9.5% to $20.7 million in 2002  compared to $18.9 million in 2001,  primarily due
to the  additional  expenses  related to the larger new buffet at the Gold Coast
and to increased expenses at the Suncoast, in line with the increase in business
there.

     Hotel.  Hotel room revenues were $10.1 million in the first quarter of 2002
compared to $9.9  million in 2001,  an increase  of 1.5%.  Lower room  occupancy
percentages  due to a  slowdown  in  tourism  after  September  11,  2001 led to
decreases at the Gold Coast,  Barbary Coast and The Orleans.  The decreases were
offset by increases at the Suncoast,  which opened 216 additional hotel rooms in
August 2001.  Room  occupancy at all four  properties  improved  over the fourth
quarter of 2001,  but had still not reached  the levels of the first  quarter of
2001.

     Other.  Other  revenues  were $9.3  million  in the first  quarter  of 2002
compared to $8.8 million in 2001, an increase of 6.4% primarily due to increases
at the  Suncoast.  Slight  increases  at the Gold Coast and  Barbary  Coast were
offset by a 5.9% decrease at The Orleans.

     General and Administrative.  General and administrative expenses were $24.8
million  in the first  quarter of 2002  compared  to $22.9  million in 2001,  an
increase of 8.2%,  primarily  due to increases in salaries,  property  taxes and
property and liability insurance costs.

     Depreciation and  Amortization.  Depreciation and amortization  expense was
$9.3 million in the first  quarter of 2002  compared to $8.6 million in 2001, an
increase of 8.3% due to remodeling and equipment purchases at the Gold Coast and
additional rooms and slot machines at the Suncoast.

                                       10
<PAGE>

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

Three Months Ended March 31, 2002 Compared to Three Months Ended March 31, 2001
     (continued)

     Other  Income  (Expenses).  Net  interest  expense  decreased  in the first
quarter of 2002 due to a lower  weighted-average  interest rate on our debt. Net
interest expense was $7.2 million in the quarter compared to $8.0 million in the
first quarter of 2001.  Capitalized  interest was $588,000 in the first quarter,
compared  to  $62,000  in the first  quarter  of 2001 due to  ongoing  expansion
projects at the Gold Coast and The Orleans.


Aggregate Indebtedness and Fixed Payment Obligations

     Our total long-term  indebtedness and fixed payment obligations on the land
leases for the  twelve-month  periods  ended  March 31, are  summarized  by year
below:

<TABLE>
<CAPTION>
                                    2003      2004      2005      2006      2007   Thereafter
                                  --------  --------  --------  --------  -------- ----------
                                                    (dollars in thousands)
Long-Term Indebtedness
<S>                               <C>       <C>       <C>       <C>       <C>       <C>
  Senior subordinated notes.....  $     --  $     --  $     --  $     --  $     --  $325,000
  Bank credit facility..........        --        --    64,500        --        --        --
  Other.........................       162       177         3         3         3        30

Fixed Payment Obligations
for Land Leases
  Barbary Coast - land lease....       175       189       190       190       190     5,256
  Barbary Coast - parking lot...       125        94        --        --        --        --
  The Orleans - land lease......     2,700     2,700     2,700     2,725     3,000   195,186
  Suncoast - land lease.........     2,435     2,495     2,555     2,615     2,675   203,235
                                  --------  --------  --------  --------  --------  --------
Total Indebtedness and
Fixed Payment Obligations         $  5,597  $  5,655  $ 69,948  $  5,533  $  5,868  $728,707
                                  ========  ========  ========  ========  ========  ========
</TABLE>

     During the quarter ended March 31, 2002, we issued $100.0 million principal
amount of senior  subordinated  notes and  received  a $5.0  million  premium in
connection with the issuance,  and we made principal  payments of $79.5 million,
net of  borrowings,  on the senior  secured  credit  facility  and  $146,000  in
principal  payments on other long-term  debt. We have debt service  payments due
aggregating  $162,000  during the next  twelve  months on other  long-term  debt
obligations.  We also have fixed payment  obligations due during the next twelve
months of $5.4 million.  Total remaining fixed payment  obligations under leases
is $431.4 million.  The fixed payment  obligations  represent payments due under
operating lease  agreements  primarily for land on which three of our properties
are located.

     The Orleans occupies a portion of an approximately  80-acre site located on
West Tropicana Avenue,  approximately one mile south of the Gold Coast. We lease
the real  property  under a ground  lease  entered  into by Coast Hotels and the
Tiberti  Company,  a Nevada  general  partnership  of which J. Tito  Tiberti,  a
director  of Coast  Hotels,  is  managing  partner.  The lease had an  effective
commencement  date of October 1, 1995, an initial term of 50 years, and includes
an option,  exercisable  by us, to extend the initial term for an  additional 25
years.  The lease  provides  for monthly  rental  payments of $200,000 per month
through February 2002, $225,000 per month during the 48-month period thereafter,
and $250,000 per month during the  60-month  period  thereafter.  In March 2011,
annual rental  payments  will increase on a compounding  basis at a rate of 3.0%
per annum.  In  addition,  we have been  granted an option to purchase  the real
property  during the two-year  period  commencing  in February  2016.  The lease
provides  that the  purchase  price  will be the fair  market  value of the real
property at the time we exercise the option,  provided  that the purchase  price
will not be less than 10 times,  nor more  than 12  times,  annual  rent at such
time.

                                       11
<PAGE>

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

Aggregate Indebtedness and Fixed Payment Obligations (continued)

     The Suncoast occupies the approximately  50-acre site located at the corner
of Rampart Boulevard and Alta Drive in the west end of the Las Vegas valley that
we lease pursuant to a Ground Lease  Agreement dated as of October 28, 1994. The
initial term of the lease expires on December 31, 2055. The lease contains three
options,  exercisable  by us, to extend the term of the lease for 10 years each.
The lease  provided for monthly  rental  payments of $166,667 for the year ended
December  31,  1995.  Thereafter,  the monthly  rent  increases by the amount of
$5,000 in  January of each year.  The  landlord  has the option to require us to
purchase the property at the end of 2014, 2015, 2016, 2017 and 2018, at the fair
market value of the real property at the time the landlord exercises the option,
provided that the purchase price will not be less than 10 times nor more than 15
times  the  annual  rent at such  time.  Based on the  terms of the  lease,  the
potential purchase price commitment ranges from  approximately  $31.0 million to
approximately  $51.0  million in the years 2014 through 2018. We have a right of
first refusal in the event the landlord desires to sell the property at any time
during the lease term.

     The Barbary Coast occupies  approximately  1.8 acres at the intersection of
Flamingo Road and the Strip and occupies real property that we lease pursuant to
a lease dated May 1, 1993.  The lease  provides for rental  payments of $175,000
per year during the initial  term of the lease that  expires on May 1, 2003.  We
have given notice to the landlord of our  intention to exercise the first of two
30-year options, with rental payments increasing to $190,000 per year during the
first ten years of the renewal period.  We have an option to purchase the leased
property at any time during the six month period prior to the  expiration of the
initial  term of the lease,  provided  that  certain  conditions  are met,  at a
purchase price equal to the greater of $3.5 million or the then appraised  value
of the real  property.  Should  the  landlord  desire to sell the real  property
during the initial term of the lease, we have a right of first refusal.  We also
lease  approximately  2.5 additional  acres of real property located adjacent to
the Barbary  Coast.  The lease expires on December 31, 2003.  The lease provides
for rental  payments of $125,000 per annum.  We use the  2.5-acre  property as a
parking lot for our employees and for valet parking.  The landlord has the right
to terminate the lease upon six months prior notice to us if it requires the use
of the  property  for its own  business  purposes  (which  excludes  leaving the
property vacant or leasing it to third parties prior to January 1, 2003).


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 $19.3  million in the three months ended March 31, 2002 and $21.4 million in
the three months ended March 31, 2001.

     Cash used in investing  activities in the quarters ended March 31, 2002 and
2001 was $55.8  million and $3.8  million,  respectively,  and was primarily for
capital  expenditures.  Expenditures of approximately $13.2 million in the first
quarter of 2001,  primarily for capital improvement  projects at the Gold Coast,
The Orleans and the Suncoast,  were offset in part by proceeds received from the
sale of assets,  including the sale of  approximately  29 acres of land in North
Las Vegas that had been held for possible future development.

     Cash  provided  by  financing  activities  was $29.3  million  in the first
quarter of 2002 primarily from borrowings under our line of credit. Net proceeds
of  $103.2  million  from the  issuance  on March  19,  2002 of  $100.0  million
principal  amount of senior  subordinated  notes  were used to repay  borrowings
under the line of credit.  In the first quarter of 2001,  cash used in financing
activities was $3.3 million,  primarily  from repayment of borrowings  under our
credit  facility  offset by our $50.0 million note issuance that we completed in
February 2001.


                                       12
<PAGE>

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

Liquidity and Capital Resources (continued)

     Our  primary  cash  requirements  for the next  twelve  months  include the
payment of principal and interest on our debt, maintenance capital expenditures,
the completion of the expansion and remodeling project at the Gold Coast and the
continued expansion of The Orleans (see Capital Expenditures below).

     In March 1999, the Company issued $175.0 million  principal  amount of 9.5%
senior  subordinated  notes with  interest  payable on April 1 and October 1 and
entered  into a  $75.0  million  senior  secured  credit  facility  due  2004 to
facilitate a refinancing.  Availability  under the credit facility was increased
to $200.0  million  in  September  1999,  subject  to  automatic  reductions  in
availability  from September 2001 through June 2004, as described  below.  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").  The premium varies depending on the Company's ratio of total debt to
EBITDA and can vary between 125 and 250 basis points.  As of March 31, 2002, the
premium over LIBOR was 1.75% (175 basis points) and the interest rate was 3.65%.
For the quarter ended March 31, 2002, the weighted average interest rate for the
senior secured credit  facility was 3.62%.  The Company incurs a commitment fee,
payable quarterly in arrears, on the unused portion of the credit facility. This
variable fee is currently at a rate of 0.375% per annum times the average unused
portion of the facility.

     The  availability  under the senior secured credit  facility was reduced by
$6.0 million to $194.0  million on September 30, 2001, by $6.0 million to $188.0
million on December 31, 2001 and by $6.0 million to $182.0  million on March 31,
2002.  It will be reduced by an  additional  $6.0 million on June 30, 2002.  The
quarterly reduction will increase to $8.5 million on each of September 30, 2002,
December 31, 2002,  March 31, 2003 and June 30,  2003;  and to $11.5  million on
each of September 30, 2003, December 31, 2003, March 31, 2004 and June 30, 2004.
The  advances  under  the  facility  may be used for  working  capital,  general
corporate purposes,  and certain improvements to our existing properties.  As of
March 31, 2002, we had $117.5 million of availability under the credit facility.

     On February 2, 2001, we issued $50.0 million additional principal amount of
senior  subordinated notes. The net proceeds of approximately $49.1 million were
used to reduce borrowings under our senior secured credit facility. On March 19,
2002,  we issued  $100.0  million  additional  principal  amount  of our  senior
subordinated  notes.  The notes were issued at a premium and the net proceeds of
approximately  $103.2  million were used to reduce  borrowings  under our senior
secured credit facility. As a result, we have additional  availability under the
credit facility to complete our capital improvement  projects as described under
"Capital  Expenditures"  below. The notes that were issued in 2001 and 2002 were
issued  under the same  indenture  and have the same  terms,  interest  rate and
maturity date as our the $175.0 million principal amount of senior  subordinated
notes issued in March 1999.

     The loan agreement  governing the credit facility 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 its leverage and fixed charge coverage. The agreement was
amended in  December  2001 and in March 2002 to  increase  the amount of certain
capital  expenditures that may be made. We are also subject to certain covenants
associated with the indenture  governing our $325.0 million  principal amount of
senior subordinated notes, including, in part, limitations on certain restricted
payments,  the incurrence of additional  indebtedness  and asset sales. At March
31, 2002, we were in compliance with all covenants and required ratios.


                                       13
<PAGE>

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

Liquidity and Capital Resources (continued)


     On April 2, 2002, Coast Hotels entered into an interest rate swap agreement
with a member of the Company's bank group wherein $100.0 million notional amount
of the  Company's  fixed rate debt was converted to a floating  rate.  The fixed
rate  paid to the  Company  is 5.77% and the  floating  rate paid to the bank is
based on six-month LIBOR and is set at 2.33% for the six months ending September
30,  2002.  The  floating  rate will be  adjusted on October 1, 2002 and will be
adjusted  each  April 1 and  October 1 until the swap  expires on April 1, 2009,
which is also the  maturity  date of the $325.0  million in senior  subordinated
notes.


Capital Expenditures

     In January 2001, we commenced an expansion of The Orleans.  The project has
an  estimated  cost of  $150.0  million  and is  expected  to be paid  for  with
operating  cash flows and borrowings  under our senior secured credit  facility.
The  expansion  includes a  special-events  arena,  a 600-room  hotel  tower,  a
2600-car  parking garage,  six additional movie theaters,  two  restaurants,  an
Irish pub and  approximately  40,000  square feet of new gaming and public area.
Through March 31, 2002, we had completed the movie theaters, the parking garage,
the  restaurants,  Irish pub and the  additional  gaming  and  public  area.  We
anticipate that 2002 cash outlays for the project will total approximately $80.0
million,  of which $33.2  million had been spent in the quarter  ended March 31,
2002.

     In the fourth quarter of 2000, we commenced an expansion and remodel of the
Gold  Coast.  The  project was  originally  designed to include a new,  expanded
buffet  restaurant,  a  sports  bar,  an  Asian-themed  restaurant,  an  Italian
restaurant,  10,000 square feet of additional meeting space, the refurbishing of
our  standard  hotel  guest rooms and the  redesign of most of the Gold  Coast's
public  areas.  In 2001 we  expanded  the scope of the  project  to  include  an
additional  approximately 20,000 square feet of slot and table games area, a new
bingo room, an expanded  porte-cochere,  a parking garage and a moving  walkway.
Through March 31, 2002, we had spent  approximately $38.8 million and had opened
the  multi-station  buffet,  the sports bar,  the  restaurants  and 6,000 of the
16,000  square  feet  of  additional  meeting  space  and we  had  substantially
completed the redesign of the public areas. We expect to complete the project by
the fourth quarter of 2002 and to spend  approximately $29.0 million in 2002, of
which $7.8 million had been spent in the quarter ended March 31, 2002.

     In the ordinary course of operating our  hotel-casinos,  it is necessary to
upgrade or replace  fixtures and  equipment and to make  improvements  that will
extend the life of our physical  plants.  We anticipate  that these  maintenance
capital expenditures will total approximately $25.0 million in 2002.


                                       14
<PAGE>

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

Capital Expenditures (continued)

     A key element of our business  strategy is the  expansion or  renovation of
our existing  properties as described above. The completion of these projects is
subject to certain risks, including but not limited to:

o    general construction risks, including cost overruns, shortages of materials
     or skilled labor, labor disputes,  unforeseen  environmental or engineering
     problems, work stoppages, fire and other natural disasters,
      construction scheduling problems and weather interference;

o    change orders and plan or specification modifications;

o    changes and concessions required by governmental or regulatory authorities;

o    delays in obtaining or inability to obtain all required  licenses,  permits
     and authorizations; and

o    disruption  of  our  operations  at  our   hotel-casinos   by  construction
     activities.

     We believe that existing cash  balances,  operating cash flow and available
borrowings under our credit facility will provide  sufficient  resources to meet
our debt and lease payment obligations and foreseeable capital expenditure
requirements at our hotel-casino properties.


Other Matters

     In July 2001, the Financial Accounting Standards Board issued Statement No.
141,  "Business  Combinations"  and  Statement  No.  142,  "Goodwill  and  Other
Intangible  Assets".   SFAS  141  is  effective  as  follows:  (a)  use  of  the
pooling-of-interests  method is prohibited for business  combinations  initiated
after  June 30,  2001;  and (b) the  provisions  of SFAS  141 also  apply to all
business  combinations  accounted for by the purchase  method that are completed
after June 30, 2001. There are also transition provisions that apply to business
combinations  completed  before  July 1, 2001  which were  accounted  for by the
purchase method.

     SFAS 142 is effective for fiscal years  beginning  after  December 15, 2001
and  applies  to all  goodwill  and other  intangible  assets  recognized  in an
entity's statement of financial position at that date,  regardless of when those
assets were initially recognized.

     In August 2001, the Financial  Accounting  Standards Board issued Statement
No.  143,  "Accounting  for  Obligations   Associated  with  the  Retirement  of
Long-Lived  Assets".  The  objectives  of SFAS 143 are to  establish  accounting
standards for the recognition and measurement of an asset retirement  obligation
and its associated asset retirement cost. SFAS 143 is effective for fiscal years
beginning after June 15, 2002.

     In October 2001, the Financial  Accounting Standards Board issued Statement
No. 144,  "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS
144 addresses financial  accounting and reporting for the impairment or disposal
of long-lived  assets.  SFAS 144 is effective for fiscal years  beginning  after
December 15, 2001 and, generally, is to be applied prospectively.

     The  adoption  of SFAS  141,  SFAS 142 and SFAS  144 had no  impact  on our
financial position or results of operations.  We do not expect the impact of the
adoption  of SFAS 143 to be  material  to our  financial  position,  results  of
operations or cash flows.


                                       15
<PAGE>

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

Certain Forward-Looking Statements

     This Form 10-Q includes "forward-looking  statements" within the meaning of
the securities laws. All statements  regarding our expected financial  position,
business  strategies  and  financing  plans  under  the  headings  "Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations",
"Business" and elsewhere in this Form 10-Q are  forward-looking  statements.  In
addition,   in  those  and  other   portions  of  this  Form  10-Q,   the  words
"anticipates,"  "believes,"  "estimates," "seeks," "expects," "plans," "intends"
and similar expressions,  as they relate to Coast Hotels or its management,  are
intended to identify  forward-looking  statements.  Although we believe that the
expectations  reflected in such forward-looking  statements are reasonable,  and
have based  these  expectations  on our beliefs as well as  assumptions  we have
made, such expectations may prove to be incorrect.  Important factors that could
cause actual results to differ  materially from such  expectations are disclosed
in this Form 10-Q, including, without limitation, the following factors:

o    increased competition, both in Nevada and other states, including increased
     competition from California Native American gaming;

o    dependence on the Las Vegas area and Southern  California for a majority of
     our customers;

o    substantial  leverage and  uncertainty  that we will be able to service our
     debt;

o    uncertainties associated with construction projects,  including the related
     disruption of operations and the availability of financing, if necessary;

o    changes  in laws or  regulations,  third  party  relations  and  approvals,
     decisions of courts, regulators and governmental bodies;

o    uncertainties related to the economy;

o    uncertainties  related to the cost and/or  availability  of electricity and
     natural gas; and

o    the impact on the travel and leisure industry, and Las Vegas in particular,
     of any terrorist  attack or threat of terrorist  attack,  and of the United
     States' response to an attack or threat.

     All subsequent written and oral forward-looking  statements attributable to
us or persons acting on our behalf are expressly  qualified in their entirety by
our cautionary statements. The forward-looking statements included are made only
as of the date of this Form 10-Q. We do not intend, and undertake no obligation,
to update these forward-looking statements.


                                       16
<PAGE>

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

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. 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.  On April 2,
2002, Coast Hotels entered into an interest rate swap agreement with a member of
the Company's bank group wherein $100.0 million notional amount of the Company's
fixed  rate debt has been  converted  to a  floating  rate.  (See  "Management's
Discussion  and  Analysis of  Financial  Condition  and  Results of  Operation -
Liquidity and Capital Resources".)

     The table below provides  information about our financial  instruments that
are  sensitive to changes in interest  rates.  For debt  obligations,  the table
presents  notional  amounts and weighted  average  interest rates by contractual
maturity dates for the twelve-month periods ended March 31,:

<TABLE>
<CAPTION>
                                                                                                         Fair
                                 2003      2004      2005      2006      2007   Thereafter   Total    Value(1)
                               --------  --------  --------  --------  -------- ---------- --------  --------
                                                           (dollars in thousands)
LIABILITIES
Short-term debt
<S>                            <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
  Fixed rate.................  $    162  $     --  $     --  $     --  $     --  $     --  $    162  $    162
  Average interest rate(2)...     9.50%        --        --        --        --        --     9.50%        --

Long-term debt
  Fixed rate.................  $     --  $    177  $      3  $      3  $      3  $325,030  $325,216  $343,091
  Average interest rate(2)...        --     9.50%     9.50%     9.50%     9.50%     9.50%     9.50%        --
  Variable rate..............  $     --  $     --  $ 64,500  $     --  $     --  $     --  $ 64,500  $ 64,500
  Average interest rate(2)           --        --     3.65%        --        --        --     3.65%        --

<FN>
(1)The fair values are based on the borrowing rate currently  available for debt
   instruments  with  similar  terms and  maturities,  and market  quotes of our
   publicly traded debt.

(2)Based upon  contractual  interest rates for fixed  indebtedness  or the LIBOR
   rate at March 31, 2002 for variable rate indebtedness.
</FN>
</TABLE>


                                       17
<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.

      None.

  (b) Reports on Form 8-K.

      On March 9, 2002,  the Company  filed a Form 8-K dated March 8, 2002 under
      Item 5, Other Events, with respect to the preliminary release of unaudited
      fourth  quarter  results and the  amendment of its senior  secured  credit
      facility.

      On March 22, 2002, the Company filed a Form 8-K dated March 21, 2002 under
      Item 5, Other  Events,  with  respect to the March 19,  2002  issuance  of
      $100.0 million  principal amount of 9 1/2% Senior  Subordinated  Notes due
      2009.


                                       18
<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:  May 15, 2002                COAST HOTELS AND CASINOS, INC.,
                                   a Nevada corporation

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

                                       19