|GUARANTY



This
GUARANTY (Guaranty), dated as of March 28, 2003, is made by Coast
Casinos, Inc., a Nevada corporation (Guarantor), in favor of Bank of America,
N.A. (the Bank), with reference to the following facts:


RECITALS


     A.       
          Pursuant to the Bridge Loan Agreement dated as of March 28, 2003 by and
          among Coast Hotels and Casinos, Inc., a Nevada corporation (the
          Borrower), Bank of America, N.A. (the Bank) (as such
          agreement may from time to time be extended, modified, renewed, restated,
          supplemented or amended, the Loan Agreement), the Bank is making a
          credit facility available to Borrower.


     B.       
          As a condition to the availability of that credit facility, Guarantor is
          required to enter into this Guaranty and to guaranty the Guarantied Obligations
          as hereinafter provided.


     C.       
          Guarantor expects to realize direct and indirect benefits as the result of the
          availability of the aforementioned credit facility to Borrower.


AGREEMENT


NOW,
THEREFORE, in order to induce the Bank to extend the aforementioned credit facility, and
for other good and valuable consideration, the receipt and adequacy of which hereby are
acknowledged, Guarantor hereby represents, warrants, covenants, agrees and guaranties as
follows:


     1.    
          Definitions. This Guaranty is [one of the Guaranties] referred to in the
          Loan Agreement. Terms defined in the Loan Agreement and not otherwise defined in
          this Guaranty shall have the meanings given those terms in the Loan Agreement
          when used herein and such definitions are incorporated herein as though set
          forth in full. In addition, as used herein, the following terms shall have the
          meanings respectively set forth after each:
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| | Bank means
Bank of America, N.A
| | ---------------------------------

| | Guarantied
Obligations means all Obligations of Borrower or any other Obligor at any time
and from time to time owed to the Bank under the Loan Agreement or one or more of the Loan
Documents (but not including Obligations owed to the Bank under this Guaranty), whether
due or to become due, matured or unmatured, liquidated or unliquidated, or contingent or
noncontingent, including obligations of performance as well as obligations of
payment, and including interest that accrues after the commencement of any
bankruptcy or insolvency proceeding by or against Guarantor, any other Obligor or any
other Person.
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| | Guarantormeans
Coast Casinos, Inc., a Nevada corporation.
| | -----------------------------------------------------------

| | Guaranty
means this Guaranty, and any extensions, modifications, renewals, restatements,
reaffirmations, supplements or amendments hereof.
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| | Loan
Documents has the meaning specified in the definition of Obligations.
| | ------------------------------------------------------------------------------

| | Obligor means
Borrower, Guarantor, and each other future guarantor of the Obligations.
| | ----------------------------------------------------------------------------------------

| | Obligations
means all present and future obligations of every kind or nature of Borrower or any other
Obligor at any time and from time to time owed to the Bank, under the Loan Agreement or
any other document executed in connection with the Loan Agreement (the Loan
Documents), whether due or to become due, matured or unmatured, liquidated or
unliquidated, or contingent or noncontingent, including obligations or performance
as well as obligations of payment, and including interest that accrues after the
commencement of any proceeding under any debtor relief law by or against Borrower or any
subsidiary or affiliate of Borrower.
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| | Person
means any individual or entity, including a trustee, corporation, limited liability
company, general partnership, limited partnership, joint stock company, trust, estate,
unincorporated organization, business association, firm, joint venture, governmental
agency, or other entity.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.    Guaranty
of Guarantied Obligations. Guarantor hereby irrevocably,           unconditionally
guaranties and promises to pay and perform on demand the           Guarantied Obligations
and each and every one of them, including all           amendments, modifications,
supplements, renewals or extensions of any of them,           whether such amendments,
modifications, supplements, renewals or extensions are           evidenced by new or
additional instruments, documents or agreements or change           the rate of interest
on any Guarantied Obligation or the security therefor, or           otherwise.


3.    Nature
of Guaranty. This Guaranty is irrevocable and continuing in nature           and
relates to any Guarantied Obligations now existing or hereafter arising.           This
Guaranty is a guaranty of prompt and punctual payment and performance and           is
not merely a guaranty of collection.


4.    Relationship
to Other Agreements. Nothing herein shall in any way modify           or limit the
effect of terms or conditions set forth in any other document,           instrument or
agreement executed by Guarantor or in connection with the           Guarantied
Obligations, but each and every term and condition hereof shall be in           addition
thereto. All provisions contained in the Loan Agreement or any other           Loan
Document that apply to Loan Documents generally are fully applicable to           this
Guaranty and are incorporated herein by this reference.


5.    Subordination
of Indebtedness of Borrower to Guarantor to the Guarantied           Obligations.
Guarantor agrees that:
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|(a) | Any indebtedness of Borrower now or hereafter owed to Guarantor hereby is
          subordinated to the Guarantied Obligations.
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|(b) | If the Bank so requests, upon the occurrence and during the continuance of any
          event of default under the Loan Agreement (Event of Default), any
          such indebtedness of Borrower now or hereafter owed to Guarantor shall be
          collected, enforced and received by Guarantor as trustee for the Bank and shall
          be paid over to the Bank in kind on account of the Guarantied Obligations, but
          without reducing or affecting in any manner the obligations of Guarantor under
          the other provisions of this Guaranty.
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|(c) | Should Guarantor fail to collect or enforce any such indebtedness of Borrower
          now or hereafter owed to Guarantor and pay the proceeds thereof to the Bank in
          accordance with Section 5(b) hereof, the Bank as Guarantors
          attorney-in-fact may do such acts and sign such documents in Guarantors
          name as the Bank considers necessary or desirable to effect such collection,
          enforcement and/or payment.
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|6.    Statutes
of Limitations and Other Laws. Until the Guarantied Obligations           shall have
been paid and performed in full, all the rights, privileges, powers           and
remedies granted to the Bank hereunder shall continue to exist and may be
          exercised by the Bank at any time and from time to time irrespective of the
fact           that any of the Guarantied Obligations may have become barred by any
statute of           limitations. Guarantor expressly waives the benefit of any and all
statutes of           limitation, and any and all laws providing for exemption of
property from           execution or for evaluation and appraisal upon foreclosure, to
the maximum           extent permitted by applicable laws.


7.    Waivers
and Consents. Guarantor acknowledges that the obligations           undertaken herein
involve the guaranty of obligations of Persons other than           Guarantor and, in
full recognition of that fact, consents and agrees that the           Bank may, at any
time and from time to time, without notice or demand, and           without affecting the
enforceability or continuing effectiveness hereof:           (a) supplement, modify,
amend, extend, renew, accelerate or otherwise           change the time for payment or
the terms of the Guarantied Obligations or any           part thereof, includingany
increase or decrease of the rate(s) of           interest thereon; (b) supplement,
modify, amend or waive, or enter into or           give any agreement, approval or
consent with respect to, the Guarantied           Obligations or any part thereof, or the
Loan Agreement or any of the Loan           Documents to which Guarantor is not a party
or any additional security or           guaranties, or any condition, covenant, default,
remedy, right, representation           or term thereof or thereunder; (c) accept
new or additional instruments,           documents or agreements in exchange for or
relative to the Loan Agreement or any           of the Loan Documents or the Guarantied
Obligations or any part thereof;           (d) accept partial payments on the
Guarantied Obligations; (e) receive           and hold additional security or
guaranties for the Guarantied Obligations or any           part thereof; (f) release,
reconvey, terminate, waive, abandon, fail to           perfect, subordinate, exchange,
substitute, transfer and/or enforce any security           or guaranties, and apply any
security and direct the order or manner of sale           thereof as the Bank in its sole
and absolute discretion may determine;           (g) release any Person from any
personal liability with respect to the           Guarantied Obligations or any part
thereof; (h) settle, release on terms           satisfactory to the Bank or by
operation of applicable laws or otherwise           liquidate or enforce any Guarantied
Obligations and any security or guaranty           therefor in any manner, consent to the
transfer of any security and bid and           purchase at any sale; and/or (i) consent
to the merger, change or any other           restructuring or termination of the
corporate existence of Borrower, Guarantor           or any other Person, and
correspondingly restructure the Guarantied Obligations,           and any such merger,
change, restructuring or termination shall not affect the           liability of
Guarantor or the continuing effectiveness hereof, or the           enforceability hereof
with respect to all or any part of the Guarantied           Obligations.


Upon
the occurrence and during the continuance of any Event of Default, the Bank may enforce
this Guaranty independently as to Guarantor and independently of any other remedy or
security the Bank at any time may have or hold in connection with the Guarantied
Obligations. Guarantor expressly waives any right to require the Bank to marshal assets in
favor of Guarantor, and agrees that the Bank may proceed against Borrower, or upon or
against any security or remedy, before proceeding to enforce this Guaranty, in such order
as it shall determine in its sole and absolute discretion. The Bank may file a separate
action or actions against Borrower and/or Guarantor without respect to whether action is
brought or prosecuted with respect to any security or against any other Person, or whether
any other Person is joined in any such action or actions. Guarantor agrees that the Bank,
Borrower and any affiliates of Borrower or Borrower may deal with each other in connection
with the Guarantied Obligations or otherwise, or alter any contracts or agreements now or
hereafter existing between any of them, in any manner whatsoever, all without in any way
altering or affecting the security of this Guaranty. The Banks rights hereunder
shall be reinstated and revived, and the enforceability of this Guaranty shall continue,
with respect to any amount at any time paid on account of the Guarantied Obligations which
thereafter shall be required to be restored or returned by the Bank upon the bankruptcy,
insolvency or reorganization of Borrower or any other Person, or otherwise, all as though
such amount had not been paid. The rights of the Bank created or granted herein and the
enforceability of this Guaranty with respect to Guarantor at all times shall remain
effective to guaranty the full amount of all the Guarantied Obligations even though the
Guarantied Obligations, or any part thereof, or any security or guaranty therefor, may be
or hereafter may become invalid or otherwise unenforceable as against Borrower or any
other guarantor or surety and whether or not Borrower shall have any personal liability
with respect thereto. To the maximum extent permitted by law, Guarantor expressly waives
any and all defenses now or hereafter arising or asserted by reason of (a) any
disability or other defense of Borrower with respect to the Guarantied Obligations,
(b) the unenforceability or invalidity of any security or guaranty for the Guarantied
Obligations or the lack of perfection or continuing perfection or failure of priority of
any security for the Guarantied Obligations, (c) the cessation for any cause
whatsoever of the liability of Borrower (other than by reason of the full payment and
performance of all Guarantied Obligations), (d) any failure of the Bank to marshal
assets in favor of Borrower or any other Person, (e) except as otherwise provided in
this Guaranty, any failure of the Bank to give notice of sale or other disposition of
collateral to Guarantor or any other Person or any defect in any notice that may be given
in connection with any sale or disposition of collateral, (f) any failure of the Bank
to comply with applicable laws in connection with the sale or other disposition of any
collateral or other security for any Guarantied Obligation, including without limitation,
any failure of the Bank to conduct a commercially reasonable sale or other disposition of
any collateral or other security for any Guarantied Obligation, (g) any act or
omission of the Bank or others that directly or indirectly results in or aids the
discharge or release of Borrower or the Guarantied Obligations or any security or guaranty
therefor by operation of law or otherwise, (h) any law which provides that the
obligation of a surety or guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a suretys or
guarantors obligation in proportion to the principal obligation, (i) any
failure of the Bank to file or enforce a claim in any bankruptcy or other proceeding with
respect to any Person, (j) the election by the Bank, in any bankruptcy proceeding of
any Person, of the application or non-application of Section 1111(b)(2) of the United
States Bankruptcy Code, (k) any extension of credit or the grant of any lien under
Section 364 of the United States Bankruptcy Code, (l) any use of cash collateral
under Section 363 of the United States Bankruptcy Code, (m) any agreement or
stipulation with respect to the provision of adequate protection in any bankruptcy
proceeding of any Person, (n) the avoidance of any lien in favor of the Bank for any
reason, (o) any bankruptcy, insolvency, reorganization, arrangement, readjustment of
debt, liquidation or dissolution proceeding commenced by or against any Person,
including any discharge of, or bar or stay against collecting, all or any of the
Guarantied Obligations (or any interest thereon) in or as a result of any such proceeding,
(p) to the extent permitted, the benefits of any form of one-action rule, or
(q) any action taken by the Bank that is authorized by this Section or any other
provision of the Loan Agreement or any Loan Document. Guarantor expressly waives all
setoffs and counterclaims and all presentments, demands for payment or performance,
notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor
and all other notices or demands of any kind or nature whatsoever with respect to the
Guarantied Obligations, and all notices of acceptance of this Guaranty or of the
existence, creation or incurrence of new or additional Guarantied Obligations.


     8.    
          Condition of Borrower and Borrowers Subsidiaries. Guarantor
          represents and warrants to the Bank that Guarantor has established adequate
          means of obtaining from Borrower and Borrowers subsidiaries, on a
          continuing basis, financial and other information pertaining to the businesses,
          operations and condition (financial and otherwise) of Borrower and
          Borrowers subsidiaries and their properties, and Guarantor now is and
          hereafter will be completely familiar with the businesses, operations and
          condition (financial and otherwise) of Borrower and Borrowers subsidiaries
          and their properties.  Guarantor hereby expressly waives and relinquishes
          any duty on the part of the Bank (should any such duty exist) to disclose to
          Guarantor any matter, fact or thing related to the businesses, operations or
          condition (financial or otherwise) of Borrower or Borrowers subsidiaries
          or their properties, whether now known or hereafter known by the Bank during the
          life of this Guaranty.  With respect to any of the Guarantied Obligations,
          the Bank need not inquire into the powers of Borrower or any subsidiaries
          thereof or the officers or employees acting or purporting to act on their
          behalf, and all Guarantied Obligations made or created in good faith reliance
          upon the professed exercise of such powers shall be secured hereby.


     9.    
          Liens on Real Property. In the event that all or any part of the
          Guarantied Obligations at any time are secured by any one or more deeds of trust
          or mortgages or other instruments creating or granting liens on any interests in
          real property, Guarantor authorizes the Bank, upon the occurrence of and during
          the continuance of any Event of Default, at its sole option, without notice or
          demand and without affecting any Guarantied Obligations of Guarantor, the
          enforceability of this Guaranty, or the validity or enforceability of any liens
          of the Bank on any collateral, to foreclose any or all of such deeds of trust or
          mortgages or other instruments by judicial or nonjudicial sale. Guarantor
          expressly waives any defenses to the enforcement of this Guaranty or any rights
          of the Bank created or granted hereby or to the recovery by the Bank against
          Borrower or any other Person liable therefor of any deficiency after a judicial
          or nonjudicial foreclosure or sale because all or any part of the Guarantied
          Obligations is secured by real property. This means, among other things: (1) the
          Bank may collect from any Guarantor without first foreclosing on any real or
          personal property collateral pledged by Borrower. (2) If the Bank forecloses on
          any real property collateral pledged by Borrower: (A) the amount of the
          Guarantied Obligations may be reduced only by the price for which that
          collateral is sold at the foreclosure sale, even if the collateral is worth more
          than the sale price. (B) the Bank may collect from any Guarantor even if the
          Bank, by foreclosing on the real property collateral, has destroyed any right
          any Guarantor may have to collect from Borrower. This is an unconditional and
          irrevocable waiver of any rights and defenses any Guarantor may have because all
          or any part of the Guarantied Obligations is secured by real property. Guarantor
          expressly waives any defenses or benefits that may be derived from California
          Code of Civil Procedure §§ 580a, 580b, 580d or 726, or comparable
          provisions of the laws of any other jurisdiction, including, without limitation,
          NRS Section 40.430 and judicial decisions relating thereto, and NRS Sections
          40.451, 40.455, 40.457 and 40.459 and all other suretyship defenses it otherwise
          might or would have under California law or other applicable law. Guarantor
          expressly waives any right to receive notice of any judicial or nonjudicial
          foreclosure or sale of any real Property or interest therein subject to any such
          deeds of trust or mortgages or other instruments and any Guarantors or any
          other Persons failure to receive any such notice shall not impair or
          affect Guarantors Obligations or the enforceability of this Guaranty or
          any rights of the Bank created or granted.


     10.    
          Waiver of Rights of Subrogation. Notwithstanding anything to the contrary
          elsewhere contained herein or in any other Loan Document to which Guarantor is a
          party, unless and until all Obligations have been paid and performed in full,
          Guarantor hereby expressly waives with respect to Borrower and its successors
          and assigns (including any surety) and any other Person which is directly
          or indirectly a creditor of Borrower or any surety for Borrower, any and all
          rights at law or in equity to subrogation, to reimbursement, to exoneration, to
          contribution, to setoff or to any other rights that could accrue to a surety
          against a principal, to a guarantor against a maker or obligor, to an
          accommodation party against the party accommodated, or to a holder or transferee
          against a maker, and which Guarantor may have or hereafter acquire against
          Borrower or any other such Person in connection with or as a result of
          Guarantors execution, delivery and/or performance of this Guaranty or any
          other Loan Document to which Guarantor is a party. Guarantor agrees that it
          shall not have or assert any such rights against Borrower or its successors and
          assigns or any other Person (including any surety) which is directly or
          indirectly a creditor of Borrower or any surety for Borrower, either directly or
          as an attempted setoff to any action commenced against Guarantor by Borrower (as
          borrower or in any other capacity), the Bank or any other such Person unless and
          until all Obligations have been paid and performed in full. Guarantor hereby
          acknowledges and agrees that this waiver is intended to benefit Borrower and the
          Bank and shall not limit or otherwise affect Guarantors liability
          hereunder, under any other Loan Document to which Guarantor is a party, or the
          enforceability hereof or thereof.


     11.    
          Understandings With Respect to Waivers and Consents. Guarantor warrants
          and agrees that each of the waivers and consents set forth herein are made with
          full knowledge of their significance and consequences, with the understanding
          that events giving rise to any defense or right waived may diminish, destroy or
          otherwise adversely affect rights which Guarantor otherwise may have against
          Borrower, the Bank or others, or against any collateral, and that, under the
          circumstances, the waivers and consents herein given are reasonable and not
          contrary to public policy or law. Guarantor acknowledges that it has either
          consulted with legal counsel regarding the effect of this Guaranty and the
          waivers and consents set forth herein, or has made an informed decision not to
          do so. If this Guaranty or any of the waivers or consents herein are determined
          to be unenforceable under or in violation of applicable law, this Guaranty and
          such waivers and consents shall be effective to the maximum extent permitted by
          law.


     12.    
          Representations and Warranties. Guarantor hereby makes each and every
          representation and warranty applicable to Guarantor set forth in Article
          6 of the Loan Agreement as if set forth in full herein.


     13.    
          Costs and Expenses. Guarantor agrees to pay to the Bank all costs and
          expenses (including, without limitation, reasonable attorneys fees
          and disbursements) incurred by the Bank in the enforcement or attempted
          enforcement of this Guaranty, whether or not an action is filed in connection
          therewith, and in connection with any waiver or amendment of any term or
          provision hereof. All advances, charges, costs and expenses, includingreasonable attorneys fees and disbursements (including the reasonably
          allocated cost of legal counsel employed by the Bank), incurred or paid by the
          Bank in exercising any right, privilege, power or remedy conferred by this
          Guaranty, or in the enforcement or attempted enforcement thereof, shall be
          subject hereto and shall become a part of the Guarantied Obligations and shall
          be paid to the Bank by Guarantor, immediately upon demand, together with
          interest thereon at the rate(s) provided for under the Loan Agreement.


     14.    
          Liability. Notwithstanding anything to the contrary elsewhere contained
          herein or in any Loan Document to which Guarantor is a party, the aggregate
          liability of Guarantor hereunder for payment and performance of the Guarantied
          Obligations shall not exceed an amount which, in the aggregate, is $1.00 less
          than that amount which if so paid or performed would constitute or result in a
          fraudulent transfer, fraudulent conveyance, or terms of
          similar import, under applicable state or federal Law, including without
          limitation, Section 548 of the United States Bankruptcy Code. The liability
          of Guarantor hereunder is independent of any other guaranties at any time in
          effect with respect to all or any part of the Guarantied Obligations, and
          Guarantors liability hereunder may be enforced regardless of the existence
          of any such guaranties. Any termination by or release of any guarantor in whole
          or in part shall not affect the continuing liability of Guarantor hereunder, and
          no notice of any such termination or release shall be required. The execution
          hereof by Guarantor is not founded upon an expectation or understanding that
          there will be any other guarantor of the Guarantied Obligations.


     15.    
          WAIVER OF JURY TRIAL. GUARANTOR AND THE BANK EXPRESSLY WAIVE THEIR
          RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
          ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS GUARANTY, THE LOAN
          AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
          THEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
          OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER NOW EXISTING OR
          HEREAFTER ARISING AND WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR
          OTHERWISE. GUARANTOR AND THE BANK AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION OR
          CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
          THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL
          BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR
          OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
          ENFORCEABILITY OF THIS GUARANTY, THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS
          OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
          AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY, THE LOAN
          AGREEMENT AND THE OTHER LOAN DOCUMENTS. ANY PARTY HERETO MAY FILE AN ORIGINAL
          COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
          CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.


     16.    
          THIS GUARANTY SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
          ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REFERENCE TO THE
          CONFLICT OF LAWS OR CHOICE OF LAW PRINCIPLES THEREOF.


IN
WITNESS WHEREOF, Guarantor has executed this Guaranty by its duly authorized officer as of
the date first written above.
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| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | GuarantorCOAST CASINOS, INC.,a Nevada corporation                                        
| | By:  /s/ Gage ParrishName:  Gage ParrishTitle:  Vice President and Chief Financial Officer 
| | Address:4500 West Tropicana RoadLas Vegas, Nevada 89103702/365-7111 general702/365-7566 FAX