<PAGE>

                                                                   EXHIBIT 10.31

                                                                  Execution Copy
                                                                  --------------

                      STOCK PLEDGE AND SECURITY AGREEMENT
                      -----------------------------------

     THIS STOCK PLEDGE AND SECURITY AGREEMENT (the "Stock Pledge Agreement"),
                                                    ----------------------
dated as of November 21, 1997, is executed by COAST RESORTS, INC., a Nevada
corporation ("Shareholder"), in favor of FIRSTAR BANK OF MINNESOTA, N.A., as
              -----------
trustee ("Trustee") for the holders of those certain $16,800,000 10 7/8% First
          -------
Mortgage Notes due 2001 ("Noteholders"), as security for that certain Guarantee
                          -----------
(the "Guarantee") set forth in that certain Indenture dated as of November 21,
      ---------
1997 (the "Indenture") by and among Trustee, Coast Hotels and Casinos, Inc., a
           ---------
Nevada corporation (the "Borrower"), and Shareholder, as guarantor.
                         --------

                                    RECITALS
                                    --------

     A.   Shareholder owns 100% of the outstanding stock of each of Borrower and
Coast West, Inc., a Nevada corporation ("Coast West").
                                         ----------

     B.   The Noteholders are willing to purchase $16,800,000 10 7/8% First
Mortgage Notes due 2001 (the "Notes") for the purposes of, among other things,
                              -----
providing funds to the Borrower for working capital purposes.

     C.   Shareholder will derive substantial benefit from the purchase of the
Notes by the Noteholders.

     D.   It is a condition precedent to purchasing the Notes that (i)
Shareholder pledge 100% of its interest in Coast West to Trustee, and (ii) the
Shareholder agrees to pledge, subject to receipt of required approvals of the
Nevada Gaming Authorities, 100% of its interest in the Borrower for the benefit
of the Noteholders, as security for the Guarantee.

                                   AGREEMENT
                                   ---------

     NOW, THEREFORE, in consideration of the above recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Shareholder hereby agrees with Trustee as follows:

          1.   Definitions and Interpretation.  When used in this Stock Pledge
               ------------------------------
     Agreement, the following terms shall have the following respective
     meanings:

          "Borrower" means Coast Hotels and Casinos, Inc., a Nevada corporation.
           --------
<PAGE>

          "Coast West" means Coast West, Inc., a Nevada corporation.
           ----------

          "Collateral" shall have the meaning given to that term in Section 2
           ----------
          hereof.

          "Obligations" shall mean and include all obligations, howsoever
           -----------
          arising, owed by Shareholder to the Noteholders of every kind and
          description, pursuant to the terms of the Guarantee and the Indenture
          (whether or not evidenced by any note or instrument and whether or not
          for the payment of money), direct or indirect, absolute or contingent,
          due or to become due, now existing or hereafter arising, including
          without limitation all interest, fees, charges, expenses, attorneys'
          fees and accountants' fees chargeable to Shareholder and payable by
          Shareholder hereunder and thereunder.

          "Stock" shall mean all shares, options, warrants, interests,
           -----
          participations or other equivalents (regardless of how designated) of
          or in Borrower and/or Coast West, as applicable, whether voting or
          nonvoting, including, without limitation, common stock, preferred
          stock, or any other equity ownership interest in Borrower and/or Coast
          West, as applicable, subject, however, to the last sentence of Section
          2.

          "UCC" shall mean the Uniform Commercial Code as the same may, from
           ---
          time to time, be in effect in the State of Nevada.

          Unless otherwise defined herein, all other capitalized terms used
     herein and defined in the Indenture shall have the respective meanings
     given to those terms in the Indenture, and all terms defined in the UCC
     shall have the respective meanings given to those terms in the UCC.  To the
     extent the meanings given herein are inconsistent with those given in the
     UCC, the meanings given herein shall govern.  Shareholder has previously
     received a copy of the Indenture.

          2.   Pledge.  Subject to Section 3 hereof, as security for the
               ------
     Obligations, Shareholder hereby pledges and assigns to Trustee, for the
     equal and ratable benefit of the Noteholders and grants to Trustee, for the
     equal and ratable benefit of the Noteholders, a security interest in all
     right, title and interests of Shareholder in and to the Stock, whether now
     owned or hereafter acquired (collectively, the "Shareholder's Stock"),
                                                     -------------------
     including without limitation the Shareholder's Stock described in Exhibit
                                                                       -------
     "A" hereto, and all proceeds thereof, including, without limitation,
     ---
     dividends and other property received and receivable by Shareholder in
     connection with the Shareholder's Stock other than dividends and other
     distributions made by Borrower and/or Coast West, as applicable, and
     expressly permitted by the Indenture, if any (the Shareholder's Stock and
     such proceeds to be referred to herein collectively as the "Collateral").
                                                                 ----------
     Notwithstanding the foregoing, the Collateral, Stock and Shareholder's
     Stock shall not include the Stock of Coast West from and at any time after
     the date on which the Stock

                                       2
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     is released from the pledge and security interest hereunder pursuant to
     Section 10.3 of the Indenture (the "Release Provision").
                                         -----------------

          3.   Condition Precedent.  The pledge of the Stock of the Borrower
               -------------------
     provided for in Section 2 hereof shall be of no force and effect until such
     time as such pledge shall have been approved by the Nevada Gaming
     Authorities.  The pledge of the Stock of the Borrower shall become
     effective immediately upon the approval of such pledge by the Nevada Gaming
     Authorities.

          4.   Representations and Warranties.  Shareholder represents and
               ------------------------------
     warrants to Trustee, for the benefit of the Noteholders, that: (a) the
     execution, delivery and performance by Shareholder of this Stock Pledge
     Agreement are within the power of Shareholder and have been duly authorized
     by all necessary actions on the part of Shareholder; (b) this Stock Pledge
     Agreement has been duly executed and delivered by Shareholder and
     constitutes a legal, valid and binding obligation of Shareholder,
     enforceable against it in accordance with its terms, except as limited by
     bankruptcy, insolvency or other laws of general application relating to or
     affecting the enforcement of creditors' rights generally and general
     principles of equity; (c) the execution, delivery and performance of this
     Stock Pledge Agreement do not (i) violate any requirement of law,
     regulation or statute, (ii) violate any provision of, or result in the
     breach or the acceleration of or entitle any Person to accelerate (whether
     after the giving of notice or lapse of time or both) any material
     obligation under, any indenture, mortgage, lien, lease, agreement, license,
     instrument, guaranty, or other document to which Shareholder is a party or
     by which Shareholder or its property is bound, or (iii) result in the
     creation or imposition of any lien upon any property, material asset or
     revenue of Shareholder (except such liens as may be created in favor of
     Trustee, for the benefit of the Noteholders, pursuant to this Stock Pledge
     Agreement); (d) no consent, approval, order or authorization of, or
     registration, declaration or filing with, any governmental authority or
     other Person (including, without limitation, the shareholders of any
     Person) is required in connection with the execution, delivery and
     performance by the Shareholder of this Stock Pledge Agreement, except such
     consents, approvals, orders, authorizations, registrations, declarations
     and filings that are so required and which have been obtained and are in
     full force and effect; (e) Shareholder is the beneficial and, in the case
     of capital stock, record owner of the Collateral (or, in the case of after-
     acquired Collateral, at the time Shareholder acquires rights in the
     Collateral, will be the beneficial and, in the case of capital stock,
     record owner thereof) and no other Person has (or, in the case of after-
     acquired Collateral, at the time Shareholder acquires rights therein, will
     have) any right, title, claim or interest (by way of lien or otherwise) in,
     against or to the Collateral, other than "Permitted Liens" (as such term is
     defined in the Indenture); (f) all of the Collateral which are shares of
     capital stock are and such future Collateral will be validly issued, fully
     paid and nonassessable securities of Borrower and Coast West; (g) the
     Collateral includes all of the issued and outstanding shares of capital
     stock of Borrower and Coast West; (h) except for the Collateral, there are
     no outstanding options, warrants or other rights to

                                       3
<PAGE>

     subscribe for or purchase voting or non-voting capital stock of Borrower or
     Coast West, nor any notes, bonds, debentures or other evidences of
     indebtedness that (1) are at any time convertible into capital stock of
     Borrower or Coast West, or (2) have or at any time would have voting rights
     with respect to Borrower or Coast West; (i) upon transfer to Trustee of all
     Collateral consisting of securities, Trustee (on behalf of the Noteholders)
     will have a first priority perfected security interest in such Collateral,
     and (or in the case of all other after-acquired Collateral, at the time
     Shareholder acquires rights therein, will have) a first priority perfected
     security interest in all other Collateral, other than Permitted Liens; and
     (j) Shareholder's principal place of business is 4500 West Tropicana
     Avenue, Las Vegas, Nevada.

          5.   Covenants.  Shareholder hereby agrees: (a) to use its best
               ---------
     efforts to obtain all required approvals of the Nevada Gaming Authorities
     relating to the pledge of the Stock of the Borrower hereunder, and to cause
     such pledge to become effective pursuant to Section 3 hereof on or before
     May 31, 1998; (b) to provide written notice to the Trustee immediately upon
     the receipt of the approvals set forth in clause (a) above, and to furnish
     the Trustee with an opinion of counsel in form and substance satisfactory
     to the Trustee within 5 days following receipt of such approvals to the
     effect that the pledge of stock of the Borrower hereunder complies with the
     Gaming Control Act; (c) to perform all acts that may be necessary to
     maintain, preserve, protect and perfect the Collateral, the lien granted to
     Trustee hereunder and the first priority of such lien, subject only to
     Permitted Liens; (d) to promptly deliver to Trustee all originals of
     certificates and other documents, instruments and agreements evidencing the
     Collateral which are now held or hereafter received by Shareholder,
     together with such blank stock powers executed by Shareholder as Trustee
     may request or, if required under the 1996 Notes Indenture to be delivered
     to the 1996 Notes Trustee, or if in the possession of the 1996 Notes
     Trustee, to provide appropriate notice to the 1996 Notes Trustee or take
     any such other actions as are required to perfect the Trustee's security
     interest in the Collateral; (e) to procure, execute and deliver from time
     to time any endorsements, assignments, financing statements and other
     documents, instruments and agreements and take other actions deemed
     necessary, as Trustee may request, to perfect, maintain and protect its
     lien hereunder and the priority thereof; (f) to appear in and defend any
     action or proceeding which may affect its title to or Trustee's interest in
     the Collateral; (g) to keep the Collateral free of all liens except those
     created hereunder and the Permitted Liens; (h) not to vote to enable, or
     take any other action to permit, Borrower or Coast West to issue any Stock
     except as expressly permitted by the Indenture; (i) to pay, and to save
     Trustee and the Noteholders harmless from, any and all liabilities with
     respect to, or resulting from any delay in paying, any and all stamps,
     excise, sales or other similar taxes which may be payable or determined to
     be payable with respect to any of the Collateral or in connection with any
     of the transactions contemplated by this Stock Pledge Agreement; and (j)
     not to, without the written consent of the Trustee pursuant to or otherwise
     expressly permitted by the Indenture, sell, dispose of or transfer
     (directly or indirectly) or covenant to sell, dispose of or transfer
     (directly or indirectly) the Collateral.

                                       4
<PAGE>

          6.   Dividends and Voting Rights Prior to Default.  Until an Event of
               --------------------------------------------
     Default (as defined in the Indenture) shall have occurred and be continuing
     and Trustee shall have given notice to Shareholder of Trustee's intent to
     exercise its rights pursuant to Subparagraph 7(b) below, Shareholder shall
     be permitted (a) to receive all dividends paid on Shareholder's Stock
     (other than dividends paid in additional Stock unless such additional Stock
     is pledged to Trustee, for the benefit of the Noteholders, pursuant to this
     Stock Pledge Agreement which are expressly permitted by the Indenture and
     (b) to exercise all voting and corporate rights with respect to the Stock;
     provided, however, that no vote shall be cast or corporate right exercised
     or other action taken which would be reasonably likely to impair the
     Collateral or be inconsistent with or result in any violation of any
     provision of the Indenture.

          7.   Default and Remedies.
               --------------------

               (a)   Event of Default.  The occurrence (whether as a result of
                     ----------------
          acts or omissions by Borrower, Coast West or any other Person) of an
          Event of Default under the Indenture (subject to such cure rights as
          may be expressly set forth in such Indenture), whatever the reason for
          such Event of Default and whether it shall be voluntary or involuntary
          or be effected by operation of law or pursuant to any judgment, decree
          or order of any court or any order, rule or regulation of any
          administrative or governmental body, shall constitute an "Event of
                                                                    --------
          Default" hereunder.
          -------

               (b)    Dividends and Voting Rights.  Upon the occurrence and
                      ---------------------------
          during the continuance of any Event of Default hereunder, Trustee may,
          upon notice to Shareholder and subject to the terms of the 1996 Notes
          Intercreditor Agreement and subject to any approval of the Nevada
          Gaming Authorities as may be required, (i) notify Borrower and Coast
          West to pay all dividends on Shareholder's Stock to Trustee, for the
          benefit of the Noteholders, receive and collect all such dividends and
          make application thereof to the obligations in such order as Trustee
          may determine, and (ii) register all of Shareholder's Stock in the
          name of Trustee or its nominee, for the benefit of the Noteholders,
          and Trustee or its nominee may thereafter exercise (A) all voting,
          corporate and other rights pertaining to Shareholder's Stock at any
          meeting of shareholders of Borrower or Coast West or otherwise and (B)
          any and all rights of conversion, exchange, subscription and any other
          rights, privileges or options pertaining to Shareholder's Stock as if
          it were the absolute owner thereof (including, without limitation,
          after Trustee has commenced to exercise remedies (or such remedies are
          deemed commenced) under the Indenture, the right to exchange at its
          discretion any and all of Shareholder's Stock upon the merger,
          consolidation, reorganization, recapitalization or other fundamental
          change in the corporate structure of Borrower or Coast West, or upon
          the exercise by Shareholder or Trustee of any right, privilege or
          option pertaining to Shareholder's Stock, and

                                       5
<PAGE>

          in connection therewith, the right to deposit and deliver any and all
          of Shareholder's Stock with any committee, depositary, transfer agent,
          registrar or other designated agency upon such terms and conditions as
          it may determine), all without liability except to account for
          property actually received by it, but Trustee shall have no duty to
          Shareholder to exercise any such right, privilege or option and shall
          not be responsible for any failure to do so or delay in so doing.
          Promptly after the waiver or cure of the Event of Default giving rise
          to Trustee's election under this Paragraph 7(b), Trustee shall notify
          Shareholder, Borrower and Coast West of such waiver or cure and for so
          long as no subsequent continuing Event of Default exists, Shareholder
          shall have all rights as a shareholder it had prior to the occurrence
          of such Event of Default, the Shareholder's Stock shall again be
          registered in the name of Shareholder and Borrower and Coast West
          shall again make all payments and distributions with respect to
          Shareholder's Stock to Shareholder.

               (c)   Additional Remedies.  Subject to the terms of the
                     -------------------
          Indenture, upon the occurrence and during the continuance of an Event
          of Default, Trustee may exercise, in addition to all other rights and
          remedies granted in this Stock Pledge Agreement and in any other
          instrument or agreement securing, evidencing or relating to the
          Obligations, any and all rights and remedies at law, including,
          without limitation, all rights and remedies of a secured party under
          the UCC.  Without limiting the generality of the foregoing, Trustee
          may, subject to the terms of the 1996 Notes Intercreditor Agreement,
          without demand of performance or other demand, presentment, protest,
          advertisement or notice of any kind to or upon Shareholder, Borrower,
          Coast West or any other Person (except notice of time and place of
          sale and any other notice required by law and any notice referred to
          below or in the Indenture) forthwith collect, receive, appropriate and
          realize upon the Collateral, or any part thereof, and/or may forthwith
          sell, assign, give option or options to purchase or otherwise dispose
          of and deliver the Collateral or any part thereof (or contract to do
          any of the foregoing), in one or more parcels at public or private
          sale or sales, in the over-the-counter market, at any exchange,
          broker's board or office of Trustee or elsewhere upon such terms and
          conditions as it may deem advisable and at such prices as it may deem
          commercially reasonable, for cash or on credit or for future delivery
          without assumption of any credit risk.  Trustee shall have the right
          upon any such public sale or sales, and, to the extent permitted by
          law, upon any such private sale or sales, to purchase the whole or any
          part of the Collateral so sold, free of any right or equity of
          redemption in Shareholder, which right or equity is hereby waived and
          released.  Trustee shall apply any proceeds from time to time held by
          it and the net proceeds of any such collection, recovery, receipt,
          appropriation, realization or sale, after deducting all reasonable
          costs and expenses of every kind incurred in respect thereof or
          incidental to the care or safekeeping of any of the Collateral or in
          any way relating to the Collateral or the rights of Trustee hereunder,
          including, without

                                       6
<PAGE>

          limitation, reasonable attorneys' fees and disbursements of counsel to
          Trustee, to the payment in whole or in part of the Obligations, in
          such order as specified by the Indenture, and only after such
          application and after the payment by Trustee of any other amount
          required by any provision of law, need Trustee account for the
          surplus, if any, to Shareholder. To the extent permitted by applicable
          law, Shareholder waives all claims, damages and demands it may acquire
          against Trustee arising out of the exercise by it of any rights
          hereunder except as may arise solely from Trustee's gross negligence
          or willful misconduct. If any notice of a proposed sale or other
          disposition of Collateral shall be required by law, such notice shall
          be deemed reasonable and proper if given at least 5 business days
          before such sale or other disposition. Shareholder further waives and
          agrees not to assert any rights or privileges which it may acquire
          under paragraphs (a) through (e) of Section 9112 of the UCC.

               (d)   No Consents Required.  The Trustee may take any action or
                     --------------------
          exercise any rights with respect to the Collateral pursuant to clauses
          (b) or (c) of this Section 7, and each of the Shareholder, the
          Borrower and Coast West agrees that it will comply with instructions
          originated by the Trustee with respect to the taking of such action or
          exercise of such rights without further consent by the Shareholder,
          the Borrower or Coast West.

          8.   Authorized Actions.  Shareholder acknowledges that the
               ------------------
     Obligations hereunder may be supplemented, augmented and otherwise
     increased as a result of changes in the underlying obligations of Borrower
     guaranteed pursuant to the Guarantee.  In that regard, Shareholder
     authorizes Trustee, in its discretion, without notice to Shareholder,
     irrespective of any change in the financial condition of Borrower, Coast
     West or Shareholder since the date hereof, and without affecting or
     impairing in any way the liability of Shareholder hereunder, from time to
     time to (a) create new Obligations, and, either before or after receipt of
     notice of revocation, renew, compromise, extend, accelerate or otherwise
     change the time for payment or performance of, or otherwise change the
     terms of the Obligations or any part thereof, including increase or
     decrease of the rate of interest thereon; (b) take and hold additional
     security for the payment or performance of the Obligations and exchange,
     enforce, waive or release any such additional security; (c) apply such
     additional security and direct the order or manner of sale thereof; (d)
     purchase such additional security at public or private sale; (e) upon the
     occurrence and during the continuance of an Event of Default, make any
     payments and do any other acts Trustee shall deem necessary to protect the
     Noteholders' security interest in the Collateral, including, without
     limitation, pay, purchase, contest or compromise any encumbrance, charge or
     lien (other than a Permitted Lien) which in the judgment of Trustee appears
     to be prior to or superior to the security interest granted hereunder, and
     appear in and defend any action or proceeding purporting to affect its
     security interest in and/or the value of the Collateral, and in exercising
     any such powers or authority, pay all expenses incurred in connection
     therewith, including reasonable attorneys' fees, and Shareholder hereby


                                       7
<PAGE>

     agrees it shall be bound by any such payment made or act taken by Trustee
     hereunder and shall reimburse Trustee for all reasonable payments made and
     expenses incurred, which amounts shall be secured under this Stock Pledge
     Agreement; provided, however, that Trustee shall have no obligation to make
     any of the foregoing payments or perform any of the foregoing acts; (f)
     otherwise exercise any right or remedy it may have against Borrower, Coast
     West, Shareholder or any security, including, without limitation, the right
     to foreclose upon any such security by judicial or nonjudicial sale; (g)
     settle, compromise with, release or substitute any one or more makers,
     endorsers or guarantors of the Obligations or underlying obligations of
     Borrower; and (h) assign the Obligations, the underlying Obligations of
     Borrower or this Stock Pledge Agreement in whole or in part (subject to the
     terms and conditions of the Indenture).

          9.   Waivers.  Shareholder waives (a) any right to require Trustee or
               -------
     the Noteholders to (i) proceed against Borrower or Coast West, (ii) proceed
     against or exhaust any security received from Borrower or Coast West or
     (iii) pursue any other remedy in Trustee's power whatsoever; (b) any
     defense resulting from the absence, impairment or loss of any right of
     reimbursement or subrogation or other right or remedy of Shareholder
     against Borrower or Coast West, or any security, whether resulting from an
     election by Trustee to foreclose upon security by nonjudicial sale, or
     otherwise; (c) any set off or counterclaim of Borrower or Coast West or any
     defense which results from any disability or other defense of Borrower or
     Coast West or the cessation or stay of enforcement from any cause
     whatsoever of the liability of Borrower or Coast West; (d) any right to
     exoneration of sureties which would otherwise be applicable; (e) except to
     the extent prohibited by NRS 40.495, any right of subrogation or
     reimbursement and any right of contribution, and right to enforce any
     remedy which Trustee now has or may hereafter have against Borrower or
     Coast West, and any benefit of, and any right to participate in, any
     security now or hereafter received by Trustee until the Obligations and the
     underlying obligations of Borrower have been paid in full; (f) all
     presentments, demands for performance, notices of nonperformance, protests,
     notice of dishonor, and notices of acceptance of the Stock Pledge Agreement
     and of the existence, creation or incurrence of new or additional
     Obligations; (g) the benefit of any statute of limitations (to the extent
     permitted by law) and (h) any right to be informed by Trustee of the
     financial condition of Borrower or Coast West or any change therein or any
     other circumstances bearing upon the risk of nonpayment or nonperformance
     of the Obligations or the underlying obligations of Borrower.  Shareholder
     has the ability and assumes the responsibility for keeping informed of the
     financial condition of Borrower and Coast West and of other circumstances
     affecting such nonpayment and nonperformance risks.

          10.   Limitation on Duties Regarding Collateral.  Trustee's sole duty
                -----------------------------------------
     with respect to the custody, safekeeping and physical preservation of the
     Collateral in its possession, under Section 9-207 of the UCC or otherwise,
     shall be to deal with it in the same manner as Trustee deals with similar
     securities and property for its own account and as would be dealt by a
     prudent person in the reasonable administration of its

                                       8
<PAGE>

     affairs. Neither Trustee nor any of its directors, officers, employees or
     agents shall be liable for failure to demand, collect or realize upon any
     of the Collateral or for any delay in doing so or shall be under any
     obligation to sell or otherwise dispose of any Collateral upon the request
     of Shareholder or otherwise.

          11.   Nevada Gaming Law.  This agreement will be governed by the
                -----------------
     Gaming Control Act.  Without limiting the generality of the foregoing, the
     parties agree that:

               (a)   Notwithstanding approval by the Nevada Gaming Authorities
          pursuant to paragraph 5, other approvals of the Gaming Authorities
          may, and in some cases will, be required before certain transactions
          relating to this Agreement may occur, including but not limited to the
          following:

                    (i)   any re-registration or action similar to re-
               registration of the Stock (or any distribution in respect of, in
               addition to, in substitution of, or in exchange for, the Stock or
               any part thereof);

                    (ii)   any foreclosure, sale, transfer or other disposition
               of the Stock; and

                    (iii)   pursuant to Regulation 8.050 of the Nevada Gaming
               Commission, the payment or receipt of any money or other thing of
               value constituting any part of the consideration for the transfer
               or acquisition of the Stock, except that such consideration may
               be placed in escrow pending the necessary approvals; and

               (b)   In the event that the Trustee takes possession of the Stock
          of Borrower or Coast West, the Trustee shall retain all evidence of
          ownership in the Stock of Borrower and if required, Coast West, or any
          distribution of additional securities in respect of, in addition to,
          in substitution of, or in exchange for, such Stock of Borrower and, if
          required, Coast West, or any part thereof, in the State of Nevada
          through its agent, Bank of America Nevada, N.A., or such substitute
          agent as it may select in its reasonable discretion that is located in
          and authorized to do business in the State of Nevada.

          12.   Termination.  This Stock Pledge Agreement shall terminate upon
                -----------
     the satisfaction of all Obligations and underlying obligations of Borrower,
     and Trustee shall promptly thereafter deliver the Stock certificates held
     by it hereunder to Shareholder and, at Shareholder's expense, execute and
     deliver to Shareholder such documents as Shareholder shall reasonably
     request to evidence such termination.  Upon any release of the Stock of
     Coast West from the pledge and security interest hereunder pursuant to the
     Release Provision, the Trustee shall promptly deliver to Shareholder all
     certificates representing such Stock and, at Shareholder's expense, execute
     and deliver to Shareholder such documents as Shareholder shall reasonably
     request to evidence such

                                       9
<PAGE>

     release.

          13.   Power of Attorney.  Shareholder hereby appoints and constitutes
                -----------------
     Trustee as Shareholder's attorney-in-fact for purposes of, at any time
     while an Event of Default exists, (a) collecting any Collateral, (b)
     conveying any item of Collateral to any purchaser thereof, and (c) making
     any payments or taking any acts under Section 6 hereof.  Trustee's
     authority hereunder shall include, without limitation, upon the occurrence
     and during the continuance of an Event of Default, the authority to endorse
     and negotiate, for Trustee's own account, any checks or instruments in the
     name of Trustee, to execute or receipt for any document, to transfer title
     to any item of Collateral, and to take any other actions necessary or
     incident to the powers granted to Trustee in this Stock Pledge Agreement.
     This power of attorney is coupled with an interest and is irrevocable by
     Shareholder.

          14.   Miscellaneous.
                -------------

               (a)   Notices.  Except as otherwise provided herein, all notices,
                     -------
          requests, demands of other communications to or upon the parties
          hereto shall be addressed to the parties at the respective addresses
          indicated below or at such other address as either party hereto may
          designate by written notice to the other party, and shall be deemed to
          have been given (i) in the case of notice by letter, three (3) days
          after deposited in the mails registered and return receipt requested,
          or (ii) in the case of notice given by telecommunication, when sent:

          Trustee:      Firstar Bank of Minnesota, N.A.
          -------
                        101 East 5th Street
                        St. Paul, Minnesota  55101
                        Attn:  Frank Leslie, III
                        FAX:  612-229-6415

                        With a copy to:

                        National Trust and Savings Association
                        300 South Fourth Street
                        Las Vegas, Nevada  89101
                        Attn: Alan Gordon

          Shareholder:  Coast Resorts, Inc.
          -----------
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada  89103
                        Attn:  Michael Gaughan
                        Ph:  (702) 365-7111
                        Fax: (702) 365-7566

                                       10
<PAGE>

                        With a copy to:

                        Barry Lieberman, Esq.
                        General Counsel
                        Coast Resorts, Inc.
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada  89103
                        Ph:  (702) 365-7111
                        Fax:  (702) 365-7566

          Borrower:     Coast Hotels and Casinos, Inc.
          --------
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada 89103
                        Attn:  Michael Gaughan
                        Ph:  (702) 367-7111
                        Fax: (702) 367-6312

                        With a copy to:

                        Barry Lieberman, Esq.
                        General Counsel
                        Coast Hotels and Casinos, Inc.
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada  89103
                        Ph:  (702) 365-7111
                        Fax:  (702) 365-7566

          Coast West:   Coast West, Inc.
          ----------
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada  89103
                        Attn:  Michael Gaughan
                        Ph:  (702) 367-7111
                        FAX: (702) 367-7566

                        With a copy to:

                        Barry Lieberman, Esq.
                        General Counsel
                        Coast Resorts, Inc.
                        4500 West Tropicana Avenue
                        Las Vegas, Nevada  89103
                        Ph:  (702) 365-7111
                        Fax:  (702) 365-7566

                                       11
<PAGE>

               (b)   Nonwaiver.  No failure or delay on Trustee's part in
                     ---------
          exercising any right hereunder shall operate as a waiver thereof or of
          any other right nor shall any single or partial exercise of any such
          right preclude any other further exercise thereof or of any other
          right.

               (c)   Amendments and Waivers.  This Stock Pledge Agreement may
                     ----------------------
          not be amended or modified, nor may any of its terms be waived, except
          by written instruments signed by the party or parties against which
          enforcement thereof is sought.  Each waiver or consent under any
          provision hereof shall be effective only in the specific instances for
          the purpose for which given.

               (d)    Assignment.  This Stock Pledge Agreement shall be binding
                       ---------
          upon inure to the benefit of Trustee, the Noteholders and Shareholder
          and their respective successors and assigns; provided, however, that
          Shareholder may not assign its rights or delegate its duties hereunder
          without the prior written consent of Trustee.  Trustee may assign or
          otherwise transfer all or any part of its interest under this Stock
          Pledge Agreement, upon notice to Shareholder.  Trustee may disclose
          this Stock Pledge Agreement and any financial or other information
          relating to Shareholder to any potential assignee or participant.

               (e)   Cumulative Rights, etc.  The rights, powers and remedies of
                     ----------------------
          Trustee under this Stock Pledge Agreement shall be in addition to all
          rights, powers and remedies given to Trustee by virtue of the
          Indenture, any applicable governmental rule or regulation or any other
          agreement, all of which rights, powers, and remedies shall be
          cumulative and may be exercised successively or concurrently without
          impairing Trustee's lien in the Collateral.  Shareholder waives any
          right to require Trustee to proceed against any Person or to exhaust
          any Collateral or to pursue any remedy in Trustee's power.

               (f)   Governing Law.  This Stock Pledge Agreement shall be
                     -------------
          governed by and construed in accordance with the laws of the State of
          New York, except (i) as the Nevada Gaming Control Act may apply, (ii)
          as required by mandatory provisions of Nevada law and (iii) to the
          extent that the validity or perfection of the lien and security
          interest hereunder, or remedies hereunder, in respect of any
          particular Collateral are governed by the laws of the State of Nevada.

               (g)   Intercreditor Agreement.  Notwithstanding anything herein
                     -----------------------
          to the contrary, all rights and remedies of the Trustee under this
          Agreement are expressly subject to the terms and conditions of the
          1996 Notes Intercreditor Agreement.

                                       12
<PAGE>

          IN WITNESS WHEREOF, Shareholder has caused this Stock Pledge and
     Security Agreement to be executed in favor of Trustee as of the day and
     year first above written.

                              SHAREHOLDER:

                              COAST RESORTS, INC., a Nevada corporation



                              By:   /s/  Harlan D. Braaten
                                 -------------------------
                              Name:  Harlan D. Braaten
                              Title:   President & COO


<PAGE>

                               ACKNOWLEDGMENT AND
                       CONSENT OF BORROWER AND COAST WEST
                       ----------------------------------

     Each of Coast Hotels and Casinos, Inc., a Nevada corporation ("Borrower"),
and Coast West, Inc. ("Coast West") hereby acknowledges receipt of a copy of the
above Stock Pledge and Security Agreement, agrees to be bound by and comply with
the terms thereof, including, without limitation, Section 6 thereof and agrees
to perform all covenants and obligations therein which, by their express or
implied terms are to be performed by Borrower and/or Coast West.

                              COAST HOTELS AND CASINOS,  INC.,
                              a Nevada corporation



                              By:   /s/  Harlan D. Braaten
                                 -------------------------
                              Name:  Harlan D. Braaten
                              Title: President & COO


                              COAST WEST, INC.,
                              a Nevada corporation


                              By:   /s/  Harlan D. Braaten
                                 -------------------------
                              Name:  Harlan D. Braaten
                              Title: President & COO


<PAGE>

                                  EXHIBIT "A"
                                  -----------

                       DESCRIPTION OF SHAREHOLDER'S STOCK
                       ----------------------------------
<TABLE>
<CAPTION>

                                                                         Percentage of
                                            Stock                         Outstanding
      Issuer          Class of Stock   Certificate No.   No. of Shares       Shares
-------------------   --------------   ---------------   -------------   --------------
<S>                   <C>              <C>                  <C>               <C>

Coast Hotels and      Common           No. 1                 1,000             100%
Casinos, Inc.

Coast West, Inc.      Common           No. 1                    10               1%

Coast West, Inc.      Common           No. 2                 1,000              99%

</TABLE>