<PAGE>
 
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                       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 September 30, 1996

                                       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 333-4356-02

                                COAST WEST, INC.

             (Exact name of registrant as specified in its charter)

           NEVADA                                88-0345708
(State or other jurisdiction of               (I.R.S. Employer
incorporation or organization              identification number)

4000 WEST FLAMINGO ROAD, LAS VEGAS,                 89103
              NEVADA                              (Zip code)
(Address of principal executive offices)

                                 (702) 367-7111
              (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 November 14, 1996:  1,010
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                         PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                                COAST WEST, INC.
                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)

                            CONDENSED BALANCE SHEETS
                   (amounts in thousands, except share data)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                           September 30,    December 31,
                                               1996            1995
                                           -------------    ------------ 
<S>                                        <C>              <C>
                                ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                      $   11          $    1
                                           -------------    ------------ 
   TOTAL CURRENT ASSETS                               11               1
                                           -------------    ------------ 
PROPERTY AND EQUIPMENT                               171             143
                                           -------------    ------------ 
                                                  $  182          $  144
                                           =============    ============ 

                           LIABILITIES AND
                        STOCKHOLDER'S EQUITY
 
CURRENT LIABILITIES:
   TOTAL CURRENT LIABILITIES                      $   --          $   --
                                           -------------    ------------ 
NONCURRENT LIABILITIES:
   Advances from affiliates                        2,083             496
   Deferred rent                                   1,913             593
                                           -------------    ------------ 
   TOTAL NONCURRENT LIABILITIES                    3,996           1,089
                                           -------------    ------------ 

STOCKHOLDER'S EQUITY (DEFICIENCY):
   Common Stock, $1.00 par value, 25,000 
    shares authorized, 1,010 shares 
    issued and outstanding                            --              --
   Additional paid - in capital                        1               1
   Deficit accumulated during 
    development stage                             (3,815)           (946)
                                           -------------    ------------ 

   TOTAL STOCKHOLDER'S EQUITY 
    (DEFICIENCY)                                  (3,814)           (945)
                                           -------------    ------------ 
                                                  $  182          $  144
                                           =============    ============ 
</TABLE>
    The accompanying notes are an integral part of these condensed financial
                                  statements.

                                       2
<PAGE>
 
                                COAST WEST, INC.
                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                       STATEMENTS OF LOSS INCURRED DURING
                             THE DEVELOPMENT STAGE
                 (amounts in thousands, except per share data)
                                  (Unaudited)
<TABLE>
<CAPTION>
 
                                                                            For the Period
                                                                          September 29, 1995,
                                                                              the Date of
                  Three Months Ended     Nine Months Ended                Inception, through
                  September 30, 1996    September 30, 1996                September 30, 1996
                  ---------------------------------------------------------------------------
<S>               <C>                   <C>                               <C>         
Rent Expense.....       $(959)               $(2,869)                           $(3,815)
                        -----                -------                            -------
  NET LOSS.......       $(959)               $(2,869)                           $(3,815)
                        =====                =======                            =======
</TABLE>

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

                                       3
<PAGE>
 
                                COAST WEST, INC.
                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                       CONDENSED STATEMENTS OF CASH FLOWS
                             (amounts in thousands)
                                  (Unaudited)

<TABLE>
<CAPTION>
 
                                                                                          For the Period
                                                                                         September 29, 1995,
                                                                                           the Date of
                                                                 Nine Months Ended       Inception, through
                                                                 September 30, 1996      September 30, 1996
<S>                                                               <C>                    <C>
CASH FLOWS FROM DEVELOPMENT STAGE ACTIVITIES:                                                    
 Net loss                                                             $(2,869)              $(3,815)
                                                                      -------               -------
 ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH                                                      
   USED FOR DEVELOPMENT STAGE ACTIVITIES:                                            
    Non-cash rent expense                                               1,320                 1,913
                                                                      -------               -------
      TOTAL ADJUSTMENTS                                                 1,320                 1,913
                                                                      -------               -------
      NET CASH USED BY DEVELOPMENT STAGE ACTIVITIES                    (1,549)               (1,902)
                                                                      -------               -------
                                                                                     
CASH FLOWS FROM INVESTING ACTIVITIES:                                                
 Capital expenditures                                                     (27)                 (171)
                                                                      -------               -------
      NET CASH USED FOR INVESTING ACTIVITIES                              (27)                 (171)
                                                                      -------               -------
                                                                                     
CASH FLOW FROM FINANCING ACTIVITIES:                                                 
 Borrowings from affiliate                                              1,586                 2,083
 Issuance of common stock                                                  --                     1
                                                                      -------               -------
                                                                                     
      NET CASH PROVIDED BY FINANCING ACTIVITIES                         1,586                 2,084
                                                                      -------               -------
                                                                                     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                       10                    11
                                                                                     
CASH AND CASH EQUIVALENTS, at beginning of period                           1                    --
                                                                      -------               -------
                                                                                     
CASH AND CASH EQUIVALENTS, at end of period                           $    11               $    11
                                                                      =======               =======
</TABLE>                                              

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

                                       4
<PAGE>
 
                                COAST WEST, INC.
                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                    NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1--BACKGROUND INFORMATION AND BASIS OF PRESENTATION

Background Information

        Coast West, Inc. ("Coast West") is a development stage Nevada
corporation, and a wholly owned subsidiary of Coast Resorts, Inc. ("Coast
Resorts"), which is also a Nevada corporation. Coast West was formed in
September 1995 as part of a reorganization (the "Reorganization") with Coast
Resorts. Coast West has no operations, but holds a long-term lease (the "Coast
West Lease") on approximately fifty acres of land in Las Vegas on which Coast
West may develop and operate a future hotel-casino. Coast Resorts has another
wholly owned subsidiary, Coast Hotels and Casinos, Inc., a Nevada corporation
("CHC"), which owns and operates two hotel-casinos located in Las Vegas, the
Gold Coast Hotel and Casino (the "Gold Coast") and the Barbary Coast Hotel and
Casino (the "Barbary Coast"), and is in the process of constructing a third
hotel-casino in Las Vegas, The Orleans Hotel and Casino ("The Orleans"),
expected to be opened in December 1996.

        The Gold Coast and the Barbary Coast had previously been owned and
operated independently by two partnerships, Gold Coast Hotel and Casino, a
Nevada limited partnership, and Barbary Coast Hotel and Casino, a Nevada
partnership, respectively (collectively, the "Predecessor Partnerships"). On
January 1, 1996, the partners of the Predecessor Partnerships completed the
Reorganization with Coast Resorts, which was formed in September 1995 for the
purpose of effecting the Reorganization. Coast Resorts and the Predecessor
Partnerships were all related through common ownership and management control.

        In the Reorganization, the partners of the Predecessor Partnerships each
transferred to Coast Resorts their respective partnership interests in the
Predecessor Partnerships in exchange for an aggregate of 1,000,000 shares of
common stock, par value $.01 per share, of Coast Resorts ("Coast Resorts Common
Stock"). Coast Resorts immediately contributed to CHC all of the assets and
liabilities of the Predecessor Partnerships other than those relating to the
Coast West Lease, which Coast Resorts contributed to Coast West. Coast Resorts
retained the liability for an aggregate principal amount of $51.0 million in
notes payable to former partners and retained the liability for $1.5 million
relating to demand notes due to a related party (the "Exchange Liabilities"). On
January 16, 1996, the Exchange Liabilities were exchanged for 494,353 shares of
Coast Resorts Common Stock, based upon management's estimate of the fair market
value of such Coast Resorts Common Stock.

Basis of Presentation

        Prior to the Reorganization, the Gold Coast and the Barbary Coast hotel-
casinos historically operated under a high degree of common control. The former
Managing General Partner of the Gold Coast Hotel and Casino was also a general
partner, and the principal manager, of the Barbary Coast Hotel and Casino. Due
to common control of the Predecessor Partnerships and the continuation of
ownership by the former partners, the Reorganization was accounted for as a
reorganization of entities under common control. Accordingly, the financial
statements of Coast West for all periods are presented as if the Reorganization
occurred at the beginning of the earliest period presented and include the
accounts of all entities involved on a historical cost basis, in a manner
similar to a pooling of interests.

                                       5
<PAGE>
 
                                COAST WEST, INC.

                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                   NOTES TO FINANCIAL STATEMENTS--(Continued)

        NOTE 1--BACKGROUND INFORMATION AND
BASIS OF PRESENTATION--(CONTINUED)

        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 for the year ended December 31, 1995. 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.

        Coast West plans to hold the Coast West Lease for future development.
Coast West has had no source of income during its development stage. CHC has
agreed to provide Coast West with advances sufficient to make lease payments on
the Coast West Lease, as more fully explained in Note 3.

NOTE 2--LEASES AND COMMITMENTS

        In January 1996, in connection with the Reorganization, Coast Resorts
contributed its rights under the Coast West Lease to Coast West. The Coast West
Lease is for a parcel of land located in the northwest area of Las Vegas which
is to be used for future expansion opportunities. The Coast West Lease term runs
through December 31, 2055, with three 10-year renewal options, with monthly
payments of $166,667 through December 31, 1995. Thereafter, the monthly rent
increases by the amount of $5,000 in January of each year. The lease includes a
put option exercisable by the landlord requiring the purchase of the land at
fair market value at the end of the 20th through 24th years of the lease,
provided that the purchase price shall not be less than ten times, nor more than
fifteen times, the annual rent at such time. Based on the terms of the lease,
the potential purchase price commitment ranges from approximately $31 million to
$51 million in the years 2014 through 2018. Coast West has no source of income
during its development stage and CHC has agreed to provide advances to Coast
West sufficient to make payments for its lease and other obligations during
Coast West's development stage. There can be no assurance that Coast West will
develop a gaming property at the Coast West site, or that it will be able to
repay such advances.

NOTE 3--PRIVATE PLACEMENT FINANCING

        On January 30, 1996, CHC completed a private placement of $175 million
principal amount of 13% First Mortgage Notes Due December 15, 2002 (the "First
Mortgage Notes"). Interest on the First Mortgage Notes is payable semi-annually
commencing June 15, 1996. The First Mortgage Notes are unconditionally
guaranteed by Coast Resorts, Coast West and certain future Subsidiaries of CHC.
Net proceeds from the offering (after deducting original issue discount and
commissions) were approximately $164.1 million. Of that amount, (i)
approximately $114.8 million was deposited in a construction

                                       6
<PAGE>
 
                                COAST WEST, INC.
                      (A Development Stage Enterprise and
               A Wholly Owned Subsidiary of Coast Resorts, Inc.)
                   NOTES TO FINANCIAL STATEMENTS--(Continued)

NOTE 3--PRIVATE PLACEMENT FINANCING--(CONTINUED)

disbursement account restricted for use by CHC to finance in part the cost of
developing, constructing, equipping and opening the Orleans, (ii) approximately
$19.3 million was used by CHC to purchase U.S. Government Obligations which were
deposited into an interest escrow account restricted to fund the interest
payable on the First Mortgage Notes through December 15, 1996 and (iii)
approximately $29.2 million was used by CHC to repay all outstanding
indebtedness under CHC's revolving credit facility, which facility was
terminated. The balance of approximately $800,000 was used to pay, in part, the
offering expenses of approximately $2.4 million.

        The indenture governing the First Mortgage Notes also limits the
activities of Coast West to (i) activities relating to the Coast West Lease
including related borrowings and repayments to CHC, (ii) activities related to
the planning and future development of the property underlying the Coast West
Lease and (iii) other activities incidental or related to those indicated above.

        Coast West has guaranteed the First Mortgage Notes, which guarantee is
secured by the Coast West Lease and substantially all of Coast West's other
existing and future assets. Under certain circumstances (including without
limitation the repayment by Coast West to CHC of all outstanding advances), the
guarantee by Coast West may be released.

                                       7
<PAGE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LOSS INCURRED DURING THE DEVELOPMENT STAGE

        The Company, formed in September 1995 as a wholly owned subsidiary of
Coast Resorts, has no operations but holds a lease on approximately fifty acres
of land held for possible future development. The net loss for Coast West was
$959,000 in the third quarter of 1996, and was $2.9 million for the first nine
months of fiscal 1996. The net loss was due primarily to rent expense (including
$440,000 of deferred rent expense in the third quarter and $1.3 million for the
first nine months of 1996). Cumulative net loss to date for Coast West is $3.8
million.

LIQUIDITY AND CAPITAL RESOURCES

        Coast West plans to hold the Coast West Lease for future development.
Coast West, a development stage company, has no operations and no sources of
liquidity. CHC has agreed to provide advances to Coast West (up to a maximum of
$8.0 million in the aggregate) to satisfy rent payable under the Coast West
Lease and certain other obligations during Coast West's development stage. (See
Note 2 to Notes to Condensed Financial Statements).

                                       8
<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.
         ----------------------------------------------------

         None.

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.

         There were no reports filed on Form 8-K during the three months ended
         September 30, 1996.

                                       9
<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:  November 14, 1996        COAST WEST, INC., a Nevada corporation
 
                                By:   /S/ Gage Parrish
                                      ------------------------------
                                      Gage Parrish
                                      Assistant Secretary
 
 

                                       10