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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549



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FORM 10-Q/A

(Amendment No. 1)



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|x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended December 31, 2005

or



| ̈ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to

Commission file number 0-14050



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THE SANDS REGENT

(exact name of registrant as specified in charter)



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Nevada                                                         |  | 88-0201135                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                               | 
|345 North Arlington Avenue, Reno, Nevada                       |  | 89501                               
|(Address of principal executive offices)                       |  | (Zip code)                          

Registrants telephone number, including area code (775) 348-2200



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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 ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated
filer ̈Accelerated filer ̈Non-accelerated filer  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ̈No x

On March 16, 2006,
the registrant had outstanding 7,115,204 shares of its common stock, $.10 par value.



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Amendment No. 1 to the Form 10-Q

This Amendment No. 1 to the Quarterly Report on Form 10-Q (the Form 10-Q) of the Sands Regent for the quarterly period ended December 31, 2005 is
being filed for the purpose of amending and restating Items 2 and 6. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, the complete text of Items 2 and 6, as amended, is set forth herein. This Amendment is specific to the
text of the fourth sentence of the first paragraph of the Sands Regency Hotel and Casino Management Discussion and Analysis of Financial Condition and Results of Operations. In addition, in connection with the filing of this Amendment No. 1 and
pursuant to Rule 12b-15, the Company is including certain currently dated certifications. The remainder of The Sands Regents Quarterly Report on Form 10-Q is unchanged and is not reproduced in this Amendment No. 1. This report speaks as
of the original filing date of the form 10-Q and, except as indicated, has not been updated to reflect events occurring subsequent to the original filing date.



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

The Sands Regent and its subsidiaries (the Company, we, our, or us) operate the Rail City Casino (Rail City) in Sparks, Nevada, the Sands Regency Casino
Hotel (the Sands) in downtown Reno, Nevada, the Gold Ranch Casino and RV Resort (the Gold Ranch) on Interstate-80 in Verdi, Nevada and, effective September 1, 2005, the Dayton Depot Casino and Red Hawk Sports Bar
(Dayton Depot Casino) in Dayton, Nevada. The Sands has 833 hotel rooms and 5 restaurants, including Tony Romas Famous for Ribs, Mels the Original diner, and Arbys. It has a full selection of gaming options, including
544 slot machines, 17 table games, poker, keno, bingo, and a sportsbook operated by a third party. Additionally, the Sands has a Just for Laughs comedy club, a cabaret lounge, and a health spa.

Gold Ranchs gaming options include 243 slot machines, a California lottery station on Gold Ranchs property which straddles the Nevada/California border, and
a sportsbook operated by a third party. Additionally, Gold Ranch has a 105-space RV park, 2 restaurants (a family style restaurant and a Jack-in-the-Box), a bar and an ARCO gas station and convenience store.

Rail City has approximately 16,600 square feet of gaming space housing 650 slots, 6 table games, keno, a sportsbook operated by a third party, a 24-hour family-style
restaurant and a bar.

On September 1, 2005, the Company acquired Dayton Depot Casino in Dayton, Nevada. Dayton Depot has 16,000 square feet of casino
and a family-style restaurant, two bars, 250 slot machines and a sportsbook operated by a third party. The Red Hawk Sports Bar, located across Highway 50 from the Depot Casino, houses 33 slot machines and a convenience store. The results of
operations for the three months and six months ended December 31, 2005 include the results of Dayton Depot Casino beginning September 1, 2005.

Critical Accounting Policies and Estimates

The Company prepares its consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America. Certain of the Companys policies, including the estimated lives assigned to long-lived assets, asset impairment, goodwill and other intangibles impairment, the adequacy of our
allowance for uncollectible receivables, self insurance reserves, litigation reserves, and customer rewards program liability requires that the Company apply significant judgment in defining the appropriate assumptions for calculating financial
estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. The Companys judgments are based on historical experience, terms of existing contracts, observations of trends in the industry, information provided
by customers and information available from other outside sources, as appropriate. There can be no assurance that actual results will not differ from Company estimates.

Results of Operations  Comparisons of Three Months and Six Months ended December 31, 2005 and 2004.

CONSOLIDATED RESULTS. For the three months and six months ended December 31, 2005, the Companys consolidated net revenues increased 15.0% and 12.6% from $19.4 million to $22.2 million and from $41.2 million to $46.4 respectively,
million compared to the same periods of the prior year.

On a by-property basis, the net revenue for Rail City increased 6.2% and 3.5% from the
corresponding three months and six months of the prior year, while net revenue for the Sands increased 4.7% and 5.5% from the corresponding three months and six months of the prior year. Gold Ranch net revenue increased 11.6% and 15.7% from the
corresponding three month and six months of the prior year, attributable to increases in the retail price of gasoline. Consolidated net revenues include Dayton Depot Casino which was acquired by the Company on September 1, 2005. The factors
that are attributed to the financial results of the business are discussed below. The Companys consolidated income from operations was $1.4 million for the quarter ended December 31, 2005 and $4.6 million for the six months ended
December 31, 2005 compared to $1.4 million and $4.5 million for the respective periods of the prior year. Rail City achieved income from operations of $1.4 million and $3.2 million for the three and six months ended December 31, 2005, a
10.0% decrease and 6.0% increase compared to the same periods of the prior year. The Sands achieved income from operations of $33,000 and $1.6 million, a 70.0% decrease and 11.4% increase from the same periods of the prior year. Income from
operations at Gold Ranch for



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



the three months of $190,000 and $676,000 six months ended December 31, 2005 represents a 26.8% and 36.2% decrease for the same three months and six
month periods of the prior year. Rising gasoline prices contributed to decreases in weekend traffic on Interstate-80 which resulted in an adverse impact to Gold Ranch. The competitive nature of gasoline prices does not allow the property to increase
its profit margins in spite of increased retail pricing. Total gallons of gasoline pumped at Gold Ranch, a key indicator of customer traffic to the property, decreased 11.6% from the same period in the prior year. Consolidated income from operations
includes a partial quarter of Dayton Depot Casino. Dayton Depot Casino was acquired by the Company on September 1, 2005.

Corporate expenses increased
to $721,000 and $1,350,000 for the three and six months ended December 31, 2005, compared to $548,000 and $875,000 for the same periods of the prior year. Increases from the prior period reflect the implementation in the current quarter and six
months ended of the requirements of SFAS 123R Share-Based Payment of $61,000 and $146,000 for stock options issued prior to July 1, 2005 and $71,000 and $87,000 for current year grants of restricted stock and $31,000 and $65,000 for
accrued management incentive awards to be awarded in the future based on fiscal 2006 performance. The following amounts, net of tax effects, were allocated to the various properties and are included in General and Administrative Expenses: Sands
Regency - $27,000; Gold Ranch - $6,200; Rail City Casino - $12,250; and Dayton Depot Casino - $5,100. In addition, the Company incurred $121,000 and $263,000 for the three months and six months ended December 31, 2005 of costs related to
preparation to meet the new internal control requirements of the Sarbanes-Oxley Act of 2002.

The Company had consolidated net income of $603,000 and $2.5
million, or $.09 per share ($.08 diluted) and $.35 per share ($.33 diluted), for the three months and six months ended December 31, 2005, compared to $498,000 and $ 2.1 million, or $.08 per share ($.07 diluted) and $.36 per share ($.33
diluted), for the three months and six months December 31, 2004.

RAIL CITY CASINO

The following table highlights Rail City Casinos sources of revenues and expenses for the periods indicated:



|                           |  |                               |       |   |                             |   |       |         |  |      |      |  |   |        |   |  |         |        |   |  |       |  
|-------------------------- |  | ----------------------------- | ----- | - | --------------------------- | - | ----- | ------- |  | ---- | ---- |  | - | ------ | - |  | ------- | ------ | - |  | ----- | -
|                           |  | THREE MONTHS ENDEDDECEMBER 31 |       |   | SIX MONTHS ENDEDDECEMBER 31 |  
|(Dollars in thousands)     |  | 2005                          |       |   | 2004                        |   |       | PERCENT |  |      | 2005 |  |   | 2004   |   |  | PERCENT |       
|Gaming revenues            |  | $                             | 6,120 |   |                             | $ | 5,572 |         |  | 9.8  | %    |  | $ | 11,719 |   |  | $       | 11,065 |   |  | 5.9   | %
|Gaming expenses            |  | $                             | 2,128 |   |                             | $ | 2,012 |         |  | 5.8  | %    |  | $ | 4,153  |   |  | $       | 4,123  |   |  | 0.7   | %
|Expense margin             |  |                               | 34.8  | % |                             |   | 36.1  | %       |  |      |      |  |   | 35.4   | % |  |         | 37.3   | % |  |       |  
|Food and beverage revenues |  | $                             | 1,186 |   |                             | $ | 1,278 |         |  | -7.2 | %    |  | $ | 2,367  |   |  | $       | 2,554  |   |  | -7.3  | %
|Food and beverage expenses |  | $                             | 835   |   |                             | $ | 811   |         |  | 3.0  | %    |  | $ | 1,646  |   |  | $       | 1,614  |   |  | 2.0   | %
|Expense margin             |  |                               | 70.4  | % |                             |   | 63.5  | %       |  |      |      |  |   | 69.5   | % |  |         | 63.2   | % |  |       |  
|Total net revenues         |  | $                             | 6,572 |   |                             | $ | 6,186 |         |  | 6.2  | %    |  | $ | 12,690 |   |  | $       | 12,256 |   |  | 3.5   | %
|Total operating expenses   |  | $                             | 5,126 |   |                             | $ | 4,598 |         |  | 11.5 | %    |  | $ | 9,472  |   |  | $       | 9,219  |   |  | 2.7   | %
|Expense margin             |  |                               | 78.0  | % |                             |   | 74.3  | %       |  |      |      |  |   | 74.6   | % |  |         | 75.2   | % |  |       |  
|Maintenance and utilities  |  | $                             | 344   |   |                             | $ | 327   |         |  | 5.2  | %    |  | $ | 717    |   |  | $       | 697    |   |  | 2.9   | %
|Percent of net revenues    |  |                               | 5.2   | % |                             |   | 5.3   | %       |  |      |      |  |   | 5.7    | % |  |         | 5.7    | % |  |       |  
|General and administrative |  | $                             | 892   |   |                             | $ | 917   |         |  | -2.7 | %    |  | $ | 1,526  |   |  | $       | 1,754  |   |  | -13.0 | %
|Percent of net revenues    |  |                               | 13.6  | % |                             |   | 14.8  | %       |  |      |      |  |   | 12.0   | % |  |         | 14.3   | % |  |       |  

RAIL CITY CASINO. Gaming revenue of $ 6.1 million and $ 11.7 million for the three months and six months
ending December 31, 2005 reflects a 9.8% and 5.9% increase or $ 548,000 and $ 654,000 from the three months and six months ended December 31, 2004. The slot machine win percentage remained constant for the three months and six months ended
December 31, 2005 and 2004. However, the total coin-in, an indicator of total slot



4



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



machine wagering, increased $2.1 million and $1.9 million for the three months and six months ended December 31, 2005 to $104.2 million and $109.5
million compared to the same periods in 2004. The win percentage which remained consistent with the prior year quarter on increased total coin-in, represents the total increased gaming revenue for three months and six months ended December 31,
2005.

Gaming operating expenses for the three and six months ended December 31, 2005 were $2.1 million, and $ 4.1 million, compared to $ 2.0 and
$ 4.1 for the same periods a year ago, an increase of $ 116,000 and $ 30,000 respectively.

Food and beverage revenue of $1.1 million and $2.3 million for
the three and six months ended December 31, 2005 decreased $92,000 from $1.2 million and $187,000 from $2.5 million for the same periods in 2004. Cover counts (number of meals served) for the three months and six months ended December 31,
2005 are 14.0% and 12% less than for the same periods one year ago.

General and administrative expenses for the three months and six months ended
December 31, 2005 were $892,000 and $1.5 million compared to $917,000 and $1.8 million for same period a year ago, a decrease of $25,000 and $ 228,000 respectively. The decrease was primarily attributable to payroll and related tax and benefit
reductions of $116,000. Since the beginning of the current 2006 fiscal year, the property had several temporary vacancies in management positions that have been subsequently filled.

On December 20, 2005, Plantation Investments Inc., a subsidiary of The Sands Regent purchased 2.58 acres of land adjacent to the Rail City Casino for a total price of $901,000. The land will be utilized in the
expansion of the casino and food and beverage operations at Rail City, with plans to expand floor space by 23,500 square feet under a revised budget of $13.8 million. Initially, the propertys current 650 slot machines will be increased to 850,
with ultimate plans for a total of 1,000 games. Pending completion of the permit process with the City of Sparks, management plans to begin a six-month, phased construction process in mid calendar year 2006. Included in the scope of the expansion
will be an additional restaurant and bar venue. Upon close of escrow, the Company recorded a $419,000 non-cash charge to income for the unamortized value of the intangible asset relating to the early termination of the lease from the State of Nevada
which is included in total operating expenses.

There can be no assurance that the construction process will proceed as currently planned due to factors
outside the Companys control. As of the filing of this report, the scope of the expansion has been increased and the budgeted project costs have been revised to be approximately $13.8 million versus the previous estimate of $8.5 million.
Increased construction costs, refinement of the project scope, careful sequencing of construction activity to minimize customer inconvenience and the acquisition of additional land for customer parking are the primary drivers of the increased cost
estimates. As previously announced, Plantation Investments, Inc., a subsidiary of the Company, has contracted to purchase a .5 acre site that is adjacent to the casino which currently has a 27 unit motel on the site for $1.3 million. The company
plans to demolish substantially all of the motel units for additional customer parking during construction and continuing once the expansion is completed. Closing of the transaction is scheduled to occur on or before April 3, 2006.



5



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



SANDS REGENCY HOTEL AND CASINO

The following table highlights the Sands sources of revenues and expenses for the periods indicated:



|                           |  |                               |       |   |                             |   |       |         |  |      |      |  |   |        |   |  |         |        |   |  |      |  
|-------------------------- |  | ----------------------------- | ----- | - | --------------------------- | - | ----- | ------- |  | ---- | ---- |  | - | ------ | - |  | ------- | ------ | - |  | ---- | -
|                           |  | THREE MONTHS ENDEDDECEMBER 31 |       |   | SIX MONTHS ENDEDDECEMBER 31 |  
|(Dollars in thousands)     |  | 2005                          |       |   | 2004                        |   |       | PERCENT |  |      | 2005 |  |   | 2004   |   |  | PERCENT |       
|Gaming revenues            |  | $                             | 5,409 |   |                             | $ | 5,069 |         |  | 6.7  | %    |  | $ | 11,356 |   |  | $       | 10,459 |   |  | 8.6  | %
|Gaming expenses            |  | $                             | 2,505 |   |                             | $ | 2,323 |         |  | 7.8  | %    |  | $ | 5,113  |   |  | $       | 4,747  |   |  | 7.7  | %
|Expense margin             |  |                               | 46.3  | % |                             |   | 45.8  | %       |  |      |      |  |   | 45.0   | % |  |         | 45.4   | % |  |      |  
|Lodging revenues           |  | $                             | 1,794 |   |                             | $ | 1,718 |         |  | 4.4  | %    |  | $ | 4,799  |   |  | $       | 4,565  |   |  | 5.1  | %
|Lodging expense            |  | $                             | 914   |   |                             | $ | 894   |         |  | 2.2  | %    |  | $ | 1,936  |   |  | $       | 1,934  |   |  | 0.1  | %
|Expense margin             |  |                               | 50.9  | % |                             |   | 52.0  | %       |  |      |      |  |   | 40.3   | % |  |         | 42.4   | % |  |      |  
|Food and beverage revenues |  | $                             | 1,011 |   |                             | $ | 1,097 |         |  | -7.8 | %    |  | $ | 2,286  |   |  | $       | 2,407  |   |  | -5.0 | %
|Food and beverage expenses |  | $                             | 763   |   |                             | $ | 784   |         |  | -2.7 | %    |  | $ | 1,678  |   |  | $       | 1,601  |   |  | 4.8  | %
|Expense margin             |  |                               | 75.5  | % |                             |   | 71.5  | %       |  |      |      |  |   | 73.4   | % |  |         | 66.5   | % |  |      |  
|Total net revenues         |  | $                             | 7,759 |   |                             | $ | 7,406 |         |  | 4.8  | %    |  | $ | 17,307 |   |  | $       | 16,408 |   |  | 5.5  | %
|Total operating expenses   |  | $                             | 7,726 |   |                             | $ | 7,317 |         |  | 5.6  | %    |  | $ | 15,733 |   |  | $       | 14,996 |   |  | 4.9  | %
|Expense margin             |  |                               | 99.6  | % |                             |   | 98.8  | %       |  |      |      |  |   | 90.9   | % |  |         | 91.4   | % |  |      |  
|Maintenance and utilities  |  | $                             | 927   |   |                             | $ | 882   |         |  | 5.1  | %    |  | $ | 1,923  |   |  | $       | 1,822  |   |  | 5.5  | %
|Percent of net revenues    |  |                               | 11.9  | % |                             |   | 11.9  | %       |  |      |      |  |   | 11.1   | % |  |         | 11.1   | % |  |      |  
|General and administrative |  | $                             | 1,519 |   |                             | $ | 1,424 |         |  | 6.7  | %    |  | $ | 2,978  |   |  | $       | 2,868  |   |  | 3.8  | %
|Percent of net revenues    |  |                               | 19.6  | % |                             |   | 19.2  | %       |  |      |      |  |   | 17.2   | % |  |         | 17.5   | % |  |      |  

SANDS REGENCY HOTEL AND CASINO. Net revenue for the Sands Regency was $7.8 million and $17.3 million for the three
months and six months ended December 31, 2005. This represents a 4.8% increase and 5.6% increase over the net revenue of $7.4 million and $16.4 million for the three months and six months ended December 31, 2004. Gaming revenue for the
three months and six months ended December 31, 2005 increased 6.7% and 8.6% over the prior year periods. The increase in gaming revenue is comprised of a increase of $840,000 and $1.1 million in slot revenue to $4.1 million and $8.7 million for
the three months and six months ended December 31, 2005, compared to $3.3 million and $7.6 million for the prior year periods. Live poker generated revenue of $121,000 and $238,000 for the three months and six months ended December 31,
2005 and was not offered in the prior year periods. Keno revenue for the three months and six months ending December 31, 2005 was $82,000 and $140,000. Keno is currently operated by the Company compared to having been a leased operation in the
prior year period.

Gaming expenses for the three months and six months ended December 31, 2005 were $2.5 million and $5.1 million an increase of 8.0%
and 7.7%, from the prior year periods. Increased expenses are related to the addition of poker and the return of keno to a Company offered product.

Lodging revenue for the three months and six months ending December 31, 2005 were $1.8 million and $4.8 million, an increase of 4.4% and 5.1% over the prior year periods. Hotel room occupancy was 78.8% and 86.0% for the three months
and six months ended December 31, 2005, compared to 77.6% and 84.6% for the same periods of the prior year. Average daily room rate increased 5.0% and 4.0% from the prior year periods.



6



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



GOLD RANCH CASINO AND RV RESORT

The following table highlights Gold Ranchs sources of revenues and expenses for the periods indicated:



|                                    |  |                               |       |   |                             |   |       |         |  |       |      |  |   |        |   |  |         |        |   |  |       |  
|----------------------------------- |  | ----------------------------- | ----- | - | --------------------------- | - | ----- | ------- |  | ----- | ---- |  | - | ------ | - |  | ------- | ------ | - |  | ----- | -
|                                    |  | THREE MONTHS ENDEDDECEMBER 31 |       |   | SIX MONTHS ENDEDDECEMBER 31 |  
|(Dollars in thousands)              |  | 2005                          |       |   | 2004                        |   |       | PERCENT |  |       | 2005 |  |   | 2004   |   |  | PERCENT |       
|Gaming revenues                     |  | $                             | 1,365 |   |                             | $ | 1,266 |         |  | 7.8   | %    |  | $ | 2,920  |   |  | $       | 2,807  |   |  | 4.0   | %
|Gaming expenses                     |  | $                             | 510   |   |                             | $ | 471   |         |  | 8.3   | %    |  | $ | 1,045  |   |  | $       | 931    |   |  | 12.2  | %
|Expense margin                      |  |                               | 37.4  | % |                             |   | 37.2  | %       |  |       |      |  |   | 35.8   | % |  |         | 33.2   | % |  |       |  
|Lodging revenues                    |  | $                             | 70    |   |                             | $ | 91    |         |  | -23.1 | %    |  | $ | 252    |   |  | $       | 298    |   |  | -15.4 | %
|Lodging expense                     |  | $                             | 38    |   |                             | $ | 42    |         |  | -9.5  | %    |  | $ | 90     |   |  | $       | 107    |   |  | -15.9 | %
|Expense margin                      |  |                               | 54.3  | % |                             |   | 46.2  | %       |  |       |      |  |   | 35.7   | % |  |         | 35.9   | % |  |       |  
|Food and beverage revenues          |  | $                             | 441   |   |                             | $ | 411   |         |  | 7.3   | %    |  | $ | 957    |   |  | $       | 872    |   |  | 9.7   | %
|Food and beverage expenses          |  | $                             | 262   |   |                             | $ | 270   |         |  | -3.0  | %    |  | $ | 581    |   |  | $       | 588    |   |  | -1.2  | %
|Expense margin                      |  |                               | 59.4  | % |                             |   | 65.7  | %       |  |       |      |  |   | 60.7   | % |  |         | 67.4   | % |  |       |  
|Fuel and convenience store revenues |  | $                             | 4,696 |   |                             | $ | 4,080 |         |  | 15.1  | %    |  | $ | 10,658 |   |  | $       | 8,783  |   |  | 21.3  | %
|Fuel and convenience store expenses |  | $                             | 4,533 |   |                             | $ | 3,915 |         |  | 15.8  | %    |  | $ | 10,266 |   |  | $       | 8,388  |   |  | 22.4  | %
|Expense margin                      |  |                               | 96.5  | % |                             |   | 96.0  | %       |  |       |      |  |   | 96.3   | % |  |         | 95.5   | % |  |       |  
|Total net revenues                  |  | $                             | 6,434 |   |                             | $ | 5,765 |         |  | 11.6  | %    |  | $ | 14,536 |   |  | $       | 12,568 |   |  | 15.7  | %
|Total operating expenses            |  | $                             | 6,244 |   |                             | $ | 5,524 |         |  | 13.0  | %    |  | $ | 13,860 |   |  | $       | 11,647 |   |  | 19.0  | %
|Expense margin                      |  |                               | 97.0  | % |                             |   | 95.8  | %       |  |       |      |  |   | 95.3   | % |  |         | 92.7   | % |  |       |  
|Maintenance and utilities           |  | $                             | 170   |   |                             | $ | 173   |         |  | -1.7  | %    |  | $ | 363    |   |  | $       | 355    |   |  | 2.3   | %
|Percent of net revenues             |  |                               | 2.6   | % |                             |   | 3.0   | %       |  |       |      |  |   | 2.5    | % |  |         | 2.8    | % |  |       |  
|General and administrative          |  | $                             | 547   |   |                             | $ | 510   |         |  | 7.3   | %    |  | $ | 1,096  |   |  | $       | 991    |   |  | 10.6  | %
|Percent of net revenues             |  |                               | 8.5   | % |                             |   | 8.8   | %       |  |       |      |  |   | 7.5    | % |  |         | 7.9    | % |  |       |  

GOLD RANCH CASINO AND RV RESORT. For the three months and six months ending December 31, 2005, Gold Ranch had
net revenue of $6.4 million and $14.5 million, compared to $5.8 million and $12.6 million for prior year periods. Gold Ranch gasoline revenues were 23.0% and 29.0% higher during the three months and six months ended December 31, 2005, resulting
from increases in the retail price of gasoline, which averaged $2.73 and $1.75 per gallon versus $2.03 and $2.29 in the same periods of the prior year. Gasoline gallons sold were 7% and 5% lower for the three months and six months ended
December 31, 2005, compared to the same periods last year due, to the increasing cost of fuel that resulted in reduced traffic counts on I-80, immediately adjacent to the property.

Gaming revenue for Gold Ranch, comprised principally of slot machine revenue, increased to $1.4 million and $2.9 million in the three months and six months ended December 31, 2005 compared to $1.3 million and
$2.8 million for the prior year periods. During the three months and six months ending December 31, 2005, the property increased its marketing and promotional activities in an effort to increase tracked customer play. However, the continued
escalation in the retail price of gas and the resulting decrease in traffic offset much of the growth achieved in tracked customer play. The Company believes and historical performance of the property has shown that there is a relationship between
gasoline gallons sold and gaming revenue.

Gold Ranch income from operations for the three months and six months ended December 31, 2005 was $190,000,
and $676,000 a $51,000 decrease from $241,000 and $245,000 decrease from $921,000 in the same periods of the prior year. The decline in Gold Ranchs income from operations was primarily due to a $63,000 increase in marketing costs intended to
provide incentives to encourage customers to sign up for the Slot Club, to use the facilities and to increase the number of customers in the database. In addition, depreciation expense increased $90,000 resulting from the installation in the spring
of 2005 of an automated slot customer tracking system.



7



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



DAYTON DEPOT CASINO

The operating results of Dayton Depot Casino which was acquired on September 1, 2005, are reflected below. The following table highlights Dayton Depot Casinos sources of revenues and expenses for the three
months and six months ended December 31, 2005:



|                           |  |                               |       |                             |      |   |         |   |      |   |       |      |  |         |  |  
|-------------------------- |  | ----------------------------- | ----- | --------------------------- | ---- | - | ------- | - | ---- | - | ----- | ---- |  | ------- |  | -
|                           |  | THREE MONTHS ENDEDDECEMBER 31 |       | SIX MONTHS ENDEDDECEMBER 31
|(Dollars in thousands)     |  | 2005                          |       |                             | 2004 |   | PERCENT |   | 2005 |   |       | 2004 |  | PERCENT
|Gaming revenues            |  | $                             | 1,282 |                             |      |  |         |  |      | $ | 1,594 |      |  |        |  | 
|Gaming expenses            |  | $                             | 427   |                             |      |  |         |  |      | $ | 558   |      |  |        |  | 
|Expense margin             |  |                               | 33.3  | %                           |      |   |         |   |      |   | 35.0  | %    |  |         |  |  
|Food and beverage revenues |  | $                             | 274   |                             |      |  |         |  |      | $ | 348   |      |  |        |  | 
|Food and beverage expenses |  | $                             | 215   |                             |      |  |         |  |      | $ | 249   |      |  |        |  | 
|Expense margin             |  |                               | 78.5  | %                           |      |   |         |   |      |   | 71.6  | %    |  |         |  |  
|Total net revenues         |  | $                             | 1,499 |                             |      |  |         |  |      | $ | 1,861 |      |  |        |  | 
|Total operating expenses   |  | $                             | 1,065 |                             |      |  |         |  |      | $ | 1,336 |      |  |        |  | 
|Expense margin             |  |                               | 71.0  | %                           |      |   |         |   |      |   | 71.8  | %    |  |         |  |  
|Maintenance and utilities  |  | $                             | 69    |                             |      |  |         |  |      | $ | 81    |      |  |        |  | 
|Percent of net revenues    |  |                               | 4.6   | %                           |      |   |         |   |      |   | 4.4   | %    |  |         |  |  
|General and administrative |  | $                             | 168   |                             |      |  |         |  |      | $ | 199   |      |  |        |  | 
|Percent of net revenues    |  |                               | 11.2  | %                           |      |   |         |   |      |   | 10.7  | %    |  |         |  |  

We are implementing a new operating strategy at Dayton Depot Casino that includes upgrading slot products,
implementing marketing and promotional programs that have been successful for the other properties within the Company, finalizing design and remodeling of the restaurant and a new slot player tracking system installed in January 2006.

CORPORATE COSTS. Corporate costs include the salaries and benefits of corporate officers and management, public company reporting costs, and related legal and accounting
fees. Corporate costs were $722,000 and $1,350,000 for the three months and six months ended December 31, 2005, compared to $548,000 and $875,000 for the prior year periods.

The $174,000 and $475,000 increase for the three months and six months ended December 31, 2005, is primarily due to $121,000 and $263,000 of costs directly attributable to fees to outside professionals retained
to assist in compliance with the new internal controls requirements of the Sarbanes  Oxley Act of 2002 (SOX), specifically SOX Section 404. There were no outside costs relating to SOX compliance in the three months and six
months ended December 31, 2004. The Company currently qualifies as a non-accelerated filer. The Securities and Exchange Commission recently extended the required compliance dates for non-accelerated filers, and we are now required to report on
our systems of internal controls (SOX 404) as of June 30, 2008. The Company has begun to shift the emphasis of the SOX 404 effort to be more focused on internal resources and reduced use of outside professionals. In addition, management
compensation expense related to the adoption of SFAS 123R ShareBased Payment totaled $ $65,000 and $168,000 ($132,000 and $233,000 on a consolidated basis) for the three months and six months ended December 31, 2005. There was no
management compensation expense related to SFAS 123R in the same periods of the prior year. For further explanation of the compensation expense related to SFAS 123R and those that are the recipients under the plans, refer to Note 5.



8



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



INTEREST EXPENSE. Interest expense was $434,000 and $ 862,000 for the three months and six months ended
December 31, 2005, compared to $799,000 and $1.4 million for the same periods in 2004. The decrease of $365,000 and $538,000 for the three months and six months ended December 31, 2005, are primarily due to several factors listed below.



| |  |  | Interest expense in the three months and six months ended December 31, 2004 includes $252,000 of accelerated interest on the portion of the convertible debt which was converted
to equity as outlined in the Companys Form 10-Q dated December 31, 2004, Note 6.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Long term debt for the quarters ending September 30, 2004 and December 31, 2004 was $34.9 million and $23.2 million compared to $28.8 million and $29.9 million for the
same periods in 2005. The majority of the reduction occurred in November and December 2004 due to issuance of 1,120,000 shares of common stock and conversion of additional debt of $1.1 million by Mr. Belding. Please refer to the Companys
Form 10-Q dated December 31, 2004 for more information on the long term debt.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Weighted average interest rates on both the term loan and revolving credit facility for the quarters ended September 30, 2004 and December 31,2004 were 5.40% and 5.44% as
compared to 6.47% and 7.05% for the same periods in 2005. Please refer to the Companys Form 10-Q dated December 31, 2004 for additional information regarding the credit facilities.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Had the accelerated interest not been recorded, interest expense for the three months and six months ended December 31, 2004, would have been approximately $500,000
and $1.1 million as compared to $434,000 and $862,000. The decrease of $66,000 and $238,000 is due to the higher long term debt balances in 2004.

Our
long-term debt balance at December 31, 2005 of $29.9 million, includes $10.5 million incurred on September 1, 2005, in connection with the acquisition of Dayton Depot Casino. This represents an increase of $6.7 million for the same period
in 2004.



9



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Capital Resources and Liquidity

At December 31, 2005, the Companys cash and cash equivalents were $6.3 million, an increase of $3 million from June 30, 2005. We had negative working capital of $1.5 million as of December 31,
2005, consistent with our policy to use any available cash, which is not needed in operations, to pay down our line of credit to minimize interest expense. At December 31, 2005, the Company had $15.9 million of borrowings available under its
revolving credit facility.

Cash flow from operations provided $6.3 million during the six month period ended December 31, 2005, compared to $4.5
million for the corresponding period of the prior year. This was primarily attributable to a $1.3 million increase in accrued expenses when compared to June 30, 2005. To facilitate a transition to a new accounting system on July 1, 2005,
all invoice payments were expedited at June 30, 2005. This resulted in lower accrued expenses and accounts payable at June 30, 2005. To appropriately gain visibility into the true net change between June 30, 2005 and December 31,
2005, combining accounts payable and other accrued expenses provides a net increase of $1.3 million primarily attributable to increases in accrued gaming taxes and licenses, accrued salaries and wages and accounts payable.

Investing activities accounted for a $13.6 million of cash for the six months ended December 31, 2005, compared with $2.3 million for the six months ended
December 31, 2004. The difference represents the net cash paid for the purchase of Dayton Depot Casino on September 1, 2005 and an increase in investment of property and equipment. Financing activities accounted for $10 million of cash
inflows during the six month period ended December 31, 2005, compared to a $4 million cash outflow for the six month period ended December 31, 2004. The change from the prior period related to the purchase of the Dayton Depot Casino. The
purchase was funded with the payment of $10.5 million in cash and issuance of 69,438 shares of Company Stock. The cash paid in connection with the transaction came primarily from an amended and restated credit facility (See Note 8).

Our amended and restated bank term loan and revolving credit facility, which totaled $47.0 million as of December 31, 2005, requires the Company to be in compliance
with certain financial and other covenants, restricts future encumbrances and limits situations where a change in control in the Company may occur. The financial covenants include the requirement that a minimum EBITDA (earnings before interest
expense, taxes, depreciation and amortization) and certain other financial ratios be maintained. The Company believes that it is in compliance with all covenants and restrictions at December 31, 2005.

The Company believes that its cash funds, cash generated from operations, and available borrowing capacity will be sufficient to fund its operations, meet current debt
obligations, and fulfill its capital expenditure obligations for the next 12 months; however, the Companys operations are subject to financial, economic, competitive, regulatory, and other factors, many of which are beyond its control. If the
Company is unable to generate sufficient cash flow, it could be required to adopt one or more alternatives, such as reducing or delaying planned capital expenditures, selling assets, restructuring debt, or obtaining additional equity capital.

Commitments and Contingencies

The following table
summarizes the Companys contractual obligations as of December 31, 2005.



|                              |  |       |            |                        |   |             |  |             |            |               |   |            |  |   |          
|----------------------------- |  | ----- | ---------- | ---------------------- | - | ----------- |  | ----------- | ---------- | ------------- | - | ---------- |  | - | ---------
|                              |  |       |            | Payments due by period
|                              |  | Total |            | Less than 1 year       |   | 1 - 3 years |  | 4 - 5 years |            | After 5 years
|Long term debt                |  | $     | 29,944,845 |                        | $ | 3,992,072   |  | $           | 10,065,273 |               | $ | 15,887,500 |  | $ |         
|Interest on long-term debt(1) |  |       | 8,515,751  |                        |   | 2,239,710   |  |             | 3,892,916  |               |   | 2,383,125  |  |   |         
|Operating Leases(2)           |  |       | 9,775,068  |                        |   | 575,004     |  |             | 1,725,012  |               |   | 1,150,008  |  |   | 6,325,044
|Other(3)                      |  |       | 4,868,869  |                        |   | 236,015     |  |             | 612,062    |               |   | 472,030    |  |   | 3,548,762
|                              |  |       |            |                        |   |             |  |             |            |               |   |            |  |   |          
|                              |  | $     | 53,104,533 |                        | $ | 7,042,801   |  | $           | 16,295,263 |               | $ | 19,892,663 |  | $ | 9,873,806
|                              |  |       |            |                        |   |             |  |             |            |               |   |            |  |   |          



|(1) | Interest is calculated by assuming a weighted average interest rate of 7.5% of the current December 31, 2005 balance less payouts until maturity. All long-term debt matures
within 5 years.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



10



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



|(2) | Represents contractual lease obligations to Prospector Gaming Enterprises (PGE) on real property in connection with the Gold Ranch acquisition agreement. Amounts reflect
a minimum base payment schedule. The lease is subject to escalation based on the property meeting certain revenue thresholds. Management does not believe these thresholds will be met without major expansion of the gaming facilities.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | Represents management fees due to PGE in connection with the RV park at Gold Ranch. Future amounts payable are subject to adjustment based on changes in interest rates.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Cautionary Note Regarding Forward-looking Statements

This quarterly report on Form 10-Q includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can
identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as may, will, project, might, expect,
believe, anticipate, intend, could, would, estimate, continue or pursue, or the negative or other variations thereof or comparable terminology. In
particular, they include statements relating to, among other things, future actions, strategies, future performance, and future financial results. We have based these forward-looking statements on our current expectations and projections about
future events. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. We undertake no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.

We caution the reader that forward-looking statements involve risks and uncertainties
that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors
described below under Risks Related to our Business, as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission. The Securities and Exchange Commission has issued amendments to
Form 10-K requiring disclosure of risk factors for filers that have fiscal years ending on or after December 31, 2005. The disclosure required in the Form 10-Q must be included only after the disclosure in the Form 10-K. Since the
Companys Annual Form 10-K ends June 30, 2006, we will comply with the amended disclosure requirement in that report and in subsequent Form 10-Qs.

Risks Relating to our Business

An investment in our common stock involves a high degree of risk. You should consider the risks described
below and the other information contained in this report carefully before deciding to invest in the Company. If any of the following risks actually occur, our business, financial condition and operating results would be materially harmed. As a
result, the trading price of our common stock could decline, and you could lose a part or all of your investment.

Our business may be adversely
impacted if the Reno economy declines.

We heavily market to and rely upon business from Reno area residents. In recent years, Reno has enjoyed robust
business growth and has attracted a number of technology, product distribution and marketing companies. These businesses have created jobs and helped fuel residential development, including the Reno metropolitan area. Should there be negative
changes in the business and job conditions in Reno, our locals business, which is a substantial part of our overall business, could be adversely impacted.



11



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The gaming industry is highly competitive and increased competition could have a material adverse effect on our
future operations.

The gaming industry is highly competitive. As new casinos are developed in the Reno area and competitive pressures from California
Native American casinos increase, other Reno area casinos may intensify their targeting of the Reno area resident market, which is one of our key markets. Increased competitive pressures in the local market could adversely impact our ability to
continue to attract local residents to our facilities, or require us to use more expensive and therefore less profitable promotions to compete more efficiently. In addition, Native American gaming facilities in California and other jurisdictions in
some instances operate under regulatory requirements less stringent than those imposed on Nevada licensed casinos, which could afford them a competitive advantage in our markets.

Our business may be adversely impacted by expanded Native American gaming operations in California and the Pacific Northwest.

Our largest sources of tourist customers are California and the Pacific Northwest, including a large number who drive to Reno from the San Francisco and Sacramento metropolitan areas. The expansion of Native American casinos in California,
Oregon and Washington will be significant on the Reno-Tahoe market. For example, Thunder Valley Casino, a large new Native American casino opened June 9, 2003, 100 miles west of Reno in Rocklin, California. Californias well-documented
budgetary problems have state officials renegotiating certain contracts with Native American casinos. Several contracts have already been changed to allow for additional slot machines. The effect of increased gaming in California and other states is
difficult to predict. However, our business would be adversely impacted if Thunder Valley and other casinos attract patrons who would otherwise travel to Reno. In addition, a significant portion of our customer base is made up of Reno area
residents. Several of the existing Reno area casinos are expanding and another competitor has announced plans to build a new casino and hotel in Reno as well. The impact of these could adversely impact our business and financial results in the
future. In addition, if other Reno area casinos lose business due to competition from Native American casinos, they may intensify their marketing efforts to Reno area residents which could potentially materially and adversely impact our business and
financial results.

Adverse winter weather conditions in the Sierra Nevada Mountains and Reno-Lake Tahoe area could have a material adverse effect on
our results of operations and financial condition.

Adverse winter weather conditions, particularly snowfall, can deter our customers from traveling or
make it difficult for them to frequent our facilities. Adverse winter weather would most significantly affect our drive-in customers from northern California and the Pacific Northwest. If the Reno area itself were to experience prolonged adverse
winter weather conditions, our results of operations and financial condition could also be materially adversely affected.

Terrorist attacks may
seriously harm our business.

The terrorist attacks that took place in the United States on September 11, 2001 were unprecedented events that
created economic and business uncertainties, especially for the travel and tourism industry. The potential for future terrorist attacks, the national and international responses, and other acts of war or hostility have created economic and political
uncertainties that could materially adversely affect our business, results of operations, and financial condition in ways we currently cannot predict.

If we lose key personnel, our business could be materially adversely affected

We depend on the continued performance of our Chief Executive
Officer and his management team. If we lose the services of our senior management personnel, and cannot replace such persons in a timely manner, our business could be materially adversely affected.



12



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Our business is subject to restrictions and limitations imposed by regulatory authorities that could adversely
affect us.

The ownership and operation of casino gaming facilities are subject to extensive state and local regulation. The State of Nevada and the
applicable local authorities require various licenses, registrations, permits and approvals to be held by us. The Nevada Gaming Commission may, among other things, limit, condition, suspend, or revoke or decline to renew a license for any cause
deemed reasonably by such licensing authority. If we violate gaming laws or regulations, substantial fines could be levied against us and we could be forced to forfeit a portion of our assets. The suspension, revocation or non-renewal of any of our
licenses or the levy on us of substantial fines or forfeiture of assets would have a material and adverse effect on our business, financial condition and results of operations.

If the State of Nevada or other local municipalities increase gaming taxes and fees, our results of operations could be adversely affected.

State and local authorities raise a significant amount of revenue through taxes and fees on gaming activities. From time to time, legislators and officials have proposed changes in tax laws, or in the administration
of such laws, affecting the gaming industry. In addition, worsening economic conditions could intensify the efforts of state and local governments to raise revenues through increases in gaming taxes. If the State of Nevada or the cities or counties
in which we operate were to increase gaming taxes and fees, our results of operations could be adversely affected.

Recently issued standards, rules and
regulations of governing agencies and bodies could result in material increases to our corporate expense which could adversely affect our financial results.

We keep abreast of new generally acceptable accounting principles and rules and regulations issued or adopted by the Financial Accounting Standards Board, the Securities and Exchange Commission, the NASDAQ and other standard setting
agencies. These principles, rules and regulations often require us to expend funds in order to meet additional requirements. As a result, our expenses could materially increase, which could adversely affect our financial results. Recently issued
accounting standards affecting our financial results are described in Note 4 to our consolidated financial statements.

Our substantial indebtedness
after recent acquisitions could adversely affect our operations and financial results.

At December 31, 2005, we had total consolidated long-term
debt, less current maturities, of approximately $29.9 million. We expect that our long-term indebtedness will substantially increase in connection with the capital expenditures we anticipate making as a result of our planned expansion, development
and renovation projects. Our substantial indebtedness could have important consequences. For example it could:



| |  |  | make it more difficult for us to satisfy our obligations under our current indebtedness;
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | increase our vulnerability to general adverse economic and industry conditions;
| | - |  | -------------------------------------------------------------------------------



| |  |  | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, which would reduce the availability of our cash flows to fund working
capital, capital expenditures, expansion efforts and other general corporate purposes;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | place us at a competitive disadvantage compared to our competitors that have less debt; and
| | - |  | -------------------------------------------------------------------------------------------



13



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THE SANDS REGENT

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



| |  |  | limit, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds. Failure to comply with these
covenants could result in an event of default. which, if not cured or waived, could have a significant adverse effect on us
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We may be
unable to successfully integrate the operations of our recent and future acquisitions and/or experience significant charges to earnings as a result of the acquisition that may adversely affect our stock price and financial condition.

We have experienced significant growth due to our recent acquisition of gaming facilities, which is a key strategy to our long term growth plans. The future success of
the Companys acquisitions will depend on a number of factors, including the successful integration of the newly acquired operations with existing operations. Potential difficulties of combining operations of acquirees with that of the Company
include, among others:



| |  | retaining key employees;
|- |  | ------------------------



| |  | consolidating administrative infrastructures;
|- |  | ---------------------------------------------



| |  | coordinating sales and marketing functions; and
|- |  | -----------------------------------------------



| |  | minimizing the diversion of managements attention from ongoing business concerns.
|- |  | ----------------------------------------------------------------------------------

Even if the Company is able to integrate its acquisitions successfully, this integration may not result in the realization of the full benefits and growth opportunities that we expect or these benefits may not be
achieved within the anticipated time frame.

In addition, as a result of the recent acquisitions we have experienced, and will likely continue to
experience, significant charges to earnings for merger and related expenses that may include due diligence costs, transaction costs or closure costs. These costs may include substantial fees for investment bankers, attorneys, accountants and
financial printing costs. Charges that we may incur in connection with acquisitions could adversely affect our results of operations.



14



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THE SANDS REGENT

PART II OTHER INFORMATION



|Item 6. | Exhibits
|------- | --------

( a ) Exhibits



|     |  |                                                                                                                             
|---- |  | ----------------------------------------------------------------------------------------------------------------------------
|31.1 |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                         
|     | 
|31.2 |  | Certification of Chief Financial and Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(b) Reports on Form 8-K

None



15



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THE SANDS REGENT AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.



|                     |  |  |  |                               |  |                                                        |  |                                                                     
|-------------------- |  |  |  | ----------------------------- |  | ------------------------------------------------------ |  | --------------------------------------------------------------------
|                     |  |  |  | THE SANDS REGENT (Registrant)
|                     |  |  | 
|Date: March 24, 2006 |  |  |  | By:                           |  | /S/ Ferenc B. Szony                                   
|                     |  |  |  |                               |  | Ferenc B. Szony, President and Chief Executive Officer
|                     |  |  | 
|Date: March 24, 2006 |  |  |  | By:                           |  | /S/ Cornelius T. Klerk                                
|                     |  |  |  |                               |  |                                                        |  | Cornelius T. Klerk, Chief Financial and Principal Accounting Officer
|                     |  |  |  |                               |  |                                                        |  |                                                                     



16