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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 
20549

FORM 10-Q

|x                                                                  | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
|------------------------------------------------------------------ | ----------------------------------------------------------------------------------------
|                                                                   |                                                                                         
|For the quarterly period ended March 31, 2003                     
|                                                                  
|or                                                                
|                                                                  
|o                                                                  | 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                                   
|                                                                  
|THE SANDS REGENT                                                  
|                                                                  
|(exact name of registrant as specified in charter)                
|                                                                  
|Nevada                                                             |                                                                                         
|                                                                   |                                                                                         
|(State or other jurisdiction of incorporation or organization)     |                                                                                         
|                                                                   |                                                                                         
|345 North Arlington Avenue, Reno, Nevada                           |                                                                                         
|                                                                   |                                                                                         
|(Address of principal executive offices)                           |                                                                                         
|                                                                   |                                                                                         
|Registrants telephone number, including area code  (775) 348-2200
|                                                                   |                                                                                         

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 o
|----- | ----

Indicate by check mark whether the registrant is
an accelerated filer (as defined in Rule 126-2 of the Exchange Act).

|Yes o | No x
|----- | ----

On May 14, 2003, the registrant had outstanding
4,941,805 shares of its common stock, $.10 par value.

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THE SANDS REGENT AND SUBSIDIARIES FORM 10-Q TABLE OF CONTENTS

|               |                                                                                        | Page No.
|-------------- | -------------------------------------------------------------------------------------- | --------
|               |                                                                                        |         
|PART I         | FINANCIAL INFORMATION                                                                  |         
|               |                                                                                        |         
|Item 1.        | Financial Statements.                                                                  | 1-3     
|               | Condensed Consolidated Statements of Operations  (unaudited)                           | 1       
|               | Condensed Consolidated Balance Sheets  (unaudited)                                     | 2       
|               | Condensed Consolidated Statements of Cash Flows  (unaudited)                           | 3       
|               | Condensed Notes to Interim Consolidated Financial Statements (unaudited)               | 4-6     
|Item 2.        | Managements Discussion and Analysis of Financial Condition and Results of Operations. | 7-11    
|Item 3.        | Quantitative and Qualitative Disclosures About Market Risk.                            | 12      
|Item 4.        | Controls and Procedures                                                                | 12      
|               |                                                                                        |         
|PART II        | OTHER INFORMATION                                                                      |         
|               |                                                                                        |         
|Item 1.        | Legal Proceedings                                                                      | 13      
|Item 2.        | Changes in Securities                                                                  | 13      
|Item 3.        | Defaults Upon Senior Securities                                                        | 13      
|Item 4.        | Submission of Matters to a Vote of Security Holders                                    | 13      
|Item 5.        | Other Information                                                                      | 13      
|Item 6.        | Exhibits and Reports on Form 8-K                                                       | 13      
|               |                                                                                        |         
|SIGNATURES     | 14                                                                                    
|CERTIFICATIONS | 15-17                                                                                 



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##### Table of Contents

THE SANDS REGENT AND SUBSIDIARIES PART I 
FINANCIAL INFORMATION

Item 1. 
Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

|                                                                                  |  | THREE MONTHS ENDED MARCH 31, |           | NINE MONTHS ENDED MARCH 31, |  
|--------------------------------------------------------------------------------- |  | ---------------------------- | --------- | --------------------------- | -
|                                                                                  |  |                              |           |                             |  
|(Dollars in thousands except per share amounts)                                   |  | 2002                         |           | 2003                        |  
|                                                                                  |  |                              |           |                             |  
|Operating revenues                                                                |  |                              |           |                             |  
|Gaming                                                                            |  | $                            | 5,248     |                             | $
|Lodging                                                                           |  |                              | 1,485     |                             |  
|Food and beverage                                                                 |  |                              | 1,316     |                             |  
|Fuel and convenience store                                                        |  |                              |          |                             |  
|Other                                                                             |  |                              | 352       |                             |  
|                                                                                  |  |                              |           |                             |  
|                                                                                  |  |                              | 8,401     |                             |  
|Less promotional allowances                                                       |  |                              | 850       |                             |  
|                                                                                  |  |                              |           |                             |  
|Net revenues                                                                      |  |                              | 7,551     |                             |  
|                                                                                  |  |                              |           |                             |  
|Operating expenses                                                                |  |                              |           |                             |  
|Gaming                                                                            |  |                              | 2,585     |                             |  
|Lodging                                                                           |  |                              | 934       |                             |  
|Food and beverage                                                                 |  |                              | 771       |                             |  
|Fuel and convenience store                                                        |  |                              |          |                             |  
|Other                                                                             |  |                              | 135       |                             |  
|Maintenance and utilities                                                         |  |                              | 905       |                             |  
|General and administrative                                                        |  |                              | 1,621     |                             |  
|Depreciation and amortization                                                     |  |                              | 754       |                             |  
|                                                                                  |  |                              |           |                             |  
|                                                                                  |  |                              | 7,705     |                             |  
|                                                                                  |  |                              |           |                             |  
|Income (loss) from operations                                                     |  |                              | (154      | )                           |  
|                                                                                  |  |                              |           |                             |  
|Other income (expense)                                                            |  |                              |           |                             |  
|Interest and other income                                                         |  |                              | 25        |                             |  
|Interest expense                                                                  |  |                              | (270      | )                           |  
|Gain (loss) on disposal of property and equipment, and abandonment of new project |  |                              | (183      | )                           |  
|Gain on sale of subsidiaries                                                      |  |                              |          |                             |  
|                                                                                  |  |                              |           |                             |  
|                                                                                  |  |                              | (428      | )                           |  
|                                                                                  |  |                              |           |                             |  
|Income (loss) before income taxes                                                 |  |                              | (582      | )                           |  
|Income tax (provision) benefit                                                    |  |                              | 203       |                             |  
|                                                                                  |  |                              |           |                             |  
|Net income (loss)                                                                 |  |                              | (379      | )                           |  
|                                                                                  |  |                              |           |                             |  
|Net income (loss) per share                                                       |  |                              |           |                             |  
|Basic                                                                             |  | $                            | (0.08     | )                           | $
|Diluted                                                                           |  |                              | (0.08     | )                           |  
|Weighted average of shares outstanding                                            |  |                              |           |                             |  
|Basic                                                                             |  |                              | 4,525,722 |                             |  
|Diluted                                                                           |  |                              | 4,525,722 |                             |  

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

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THE SANDS REGENT AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

|(Dollars in thousands)                                                                                                             |  | JUNE 30,2002 |         | MARCH 31,2003 |  
|---------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | ------------- | -
|                                                                                                                                   |  |              |         |               |  
|ASSETS                                                                                                                             |  |              |         |               |  
|Current assets                                                                                                                     |  |              |         |               |  
|Cash and cash equivalents                                                                                                          |  | $            | 5,628   |               | $
|Short-term investments                                                                                                             |  |              | 20      |               |  
|Accounts receivable, net of allowance                                                                                              |  |              | 517     |               |  
|Note receivable, sale of subsidiaries                                                                                              |  |              | 180     |               |  
|Inventories                                                                                                                        |  |              | 716     |               |  
|Federal income tax refund receivable                                                                                               |  |              | 369     |               |  
|Prepaid expenses and other assets                                                                                                  |  |              | 1,253   |               |  
|                                                                                                                                   |  |              |         |               |  
|Total current assets                                                                                                               |  |              | 8,683   |               |  
|                                                                                                                                   |  |              |         |               |  
|Property and equipment                                                                                                             |  |              |         |               |  
|Land                                                                                                                               |  |              | 8,506   |               |  
|Buildings and improvements                                                                                                         |  |              | 40,148  |               |  
|Equipment, furniture and fixtures                                                                                                  |  |              | 20,345  |               |  
|Construction in progress                                                                                                           |  |              | 346     |               |  
|                                                                                                                                   |  |              |         |               |  
|                                                                                                                                   |  |              | 69,345  |               |  
|Less accumulated depreciation and amortization                                                                                     |  |              | 31,811  |               |  
|                                                                                                                                   |  |              |         |               |  
|Property and equipment, net                                                                                                        |  |              | 37,534  |               |  
|                                                                                                                                   |  |              |         |               |  
|Other assets                                                                                                                       |  |              |         |               |  
|Note receivable, sale of subsidiaries, net                                                                                         |  |              | 144     |               |  
|Goodwill                                                                                                                           |  |              | 10,950  |               |  
|Other intangibles                                                                                                                  |  |              | 1,356   |               |  
|Other                                                                                                                              |  |              | 477     |               |  
|                                                                                                                                   |  |              |         |               |  
|Total other assets                                                                                                                 |  |              | 12,927  |               |  
|                                                                                                                                   |  |              |         |               |  
|Total assets                                                                                                                       |  | $            | 59,144  |               | $
|                                                                                                                                   |  |              |         |               |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                               |  |              |         |               |  
|Current liabilities                                                                                                                |  |              |         |               |  
|Accounts payable                                                                                                                   |  | $            | 3,154   |               | $
|Accrued salaries, wages and benefits                                                                                               |  |              | 997     |               |  
|Other accrued expenses                                                                                                             |  |              | 241     |               |  
|Federal income tax payable                                                                                                         |  |              |        |               |  
|Deferred federal income tax liability                                                                                              |  |              | 222     |               |  
|Current maturities of long-term debt                                                                                               |  |              | 849     |               |  
|                                                                                                                                   |  |              |         |               |  
|Total current liabilities                                                                                                          |  |              | 5,463   |               |  
|Long-term debt                                                                                                                     |  |              | 19,026  |               |  
|Deferred federal income tax liability                                                                                              |  |              | 1,047   |               |  
|                                                                                                                                   |  |              |         |               |  
|Total liabilities                                                                                                                  |  |              | 25,536  |               |  
|                                                                                                                                   |  |              |         |               |  
|Common stock ($.10 par value, 20,000,000 shares authorized; 7,325,805 issued at June 30, 2002; 7,344,805 issued at
March 31, 2003) |  |              | 733     |               |  
|Additional paid-in capital                                                                                                         |  |              | 13,916  |               |  
|Retained earnings                                                                                                                  |  |              | 41,317  |               |  
|                                                                                                                                   |  |              |         |               |  
|                                                                                                                                   |  |              | 55,966  |               |  
|Treasury stock (at cost; 2,403,000 shares)                                                                                         |  |              | (22,358 | )             |  
|                                                                                                                                   |  |              |         |               |  
|Total stockholders equity                                                                                                         |  |              | 33,608  |               |  
|                                                                                                                                   |  |              |         |               |  
|Total liabilities and stockholders equity                                                                                         |  | $            | 59,144  |               | $
|                                                                                                                                   |  |              |         |               |  

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

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THE SANDS REGENT AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

|                                                                                        |  | NINE MONTHS ENDED MARCH 31, |       
|--------------------------------------------------------------------------------------- |  | --------------------------- | ------
|                                                                                        |  |                             |       
|(Dollars in thousands)                                                                  |  | 2002                        |       
|                                                                                        |  |                             |       
|Operating Activities                                                                    |  |                             |       
|Net income (loss)                                                                       |  | $                           | (163  
|Adjustment to reconcile net income (loss) to net cash provided by operating activities: |  |                             |       
|Depreciation and amortization                                                           |  |                             | 2,316 
|Loss on disposal of property and equipment                                              |  |                             | 119   
|Decrease in accounts receivable                                                         |  |                             | 272   
|Decrease in inventories                                                                 |  |                             | 95    
|Decrease in prepaid expenses and other current assets                                   |  |                             | 127   
|(Increase) decrease in other assets                                                     |  |                             | (559  
|Decrease in accounts payable                                                            |  |                             | (451  
|Increase (decrease) in other accrued expenses                                           |  |                             | (334  
|Change in federal income taxes payable/receivable                                       |  |                             | (254  
|Change in deferred federal income taxes                                                 |  |                             | (16   
|                                                                                        |  |                             |       
|Net cash provided by operating activities                                               |  |                             | 1,152 
|                                                                                        |  |                             |       
|Investing Activities                                                                    |  |                             |       
|Purchase of short-term investments                                                      |  |                             | (10   
|Payments received on notes receivable                                                   |  |                             | 390   
|Acquisitions of property and equipment                                                  |  |                             | (2,274
|Payment of accounts payable for prior year purchases of property and equipment          |  |                             | (186  
|Payments received on sale of subsidiaries                                               |  |                             |      
|Proceeds from sale of assets                                                            |  |                             | 89    
|                                                                                        |  |                             |       
|Net cash used in investing activities                                                   |  |                             | (1,991
|                                                                                        |  |                             |       
|Financing Activities                                                                    |  |                             |       
|Payments on long-term debt                                                              |  |                             | (182  
|Issuance of Company common stock                                                        |  |                             |      
|                                                                                        |  |                             |       
|Net cash used in financing activities                                                   |  |                             | (182  
|                                                                                        |  |                             |       
|Decrease in cash and cash equivalents                                                   |  |                             | (1,021
|Cash and cash equivalents, beginning of period                                          |  |                             | 10,150
|                                                                                        |  |                             |       
|Cash and cash equivalents, end of period                                                |  | $                           | 9,129 
|                                                                                        |  |                             |       
|Supplemental disclosure of cash flow information                                        |  |                             |       
|Interest paid, net of amount capitalized                                                |  | $                           | 843   
|Federal income taxes paid                                                               |  | $                           | 160   
|Supplemental disclosure of non-cash investing and financing activities                  |  |                             |       
|Property and equipment acquired by accounts payable                                     |  | $                           | 451   

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

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THE SANDS REGENT AND SUBSIDIARIESNOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) THREE AND NINE MONTHS ENDED MARCH 31, 2003 AND 2002

NOTE 1 - BASIS OF
PRESENTATION

The accompanying Consolidated Financial Statements include the accounts of The Sands Regent (the Company) and its wholly-owned subsidiaries: Zante, Inc.
(Zante), a Nevada corporation, and Last Chance, Inc. (Last Chance), a Nevada corporation. Zante owns and operates the Sands Regency Casino/Hotel (Sands Regency) in downtown Reno, Nevada. Last Chance owns and
operates the Gold Ranch Casino and R.V. Resort in Verdi, Nevada, and California Prospectors, Ltd.(California Prospectors), a Nevada limited liability company, which operates a California Lottery station. Together, Last Chance and
California Prospectors are presented as (Gold Ranch).

These statements should be read in connection with the 2002 Annual Report filed with the Securities and Exchange Commission as
Exhibit 13 to the Companys Form 10-K for the year ended June 30, 2002. The accounting policies utilized in the preparation of the financial information herein are the same as those summarized in the 2002 Annual Report.

The Consolidated Balance Sheet at June 30, 2002, has been taken from the audited financial statements at that date. On June 1,2002, the Company acquired the Gold Ranch Casino and R.V. Resort (Gold Ranch)
on Interstate 80 in Verdi, Nevada. The unaudited consolidated financial results for the three and nine months ended March 31, 2003, include the results of operations for Gold Ranch. Year-to-year comparisons are affected by this
acquisition.   The following is pro-forma financial information that is presented as if the Gold Ranch acquisition had been effective at the beginning of fiscal 2002.

(dollars in
thousands):

|                                        |  | THREE MONTHS ENDED MARCH 31, |        | NINE MONTHS ENDED MARCH 31, | 
|--------------------------------------- |  | ---------------------------- | ------ | --------------------------- | 
|                                        |  |                              |        |                             | 
|                                        |  | 2002                         |        | 2003                        | 
|                                        |  |                              |        |                             | 
|Net revenues as reported                |  |                              | 7,551  |                             | 
|Proforma net revenues                   |  |                              | 13,125 |                             | 
|Net income (loss) as reported           |  |                              | (379   | )                           | 
|Gold Ranch proforma net income          |  |                              | 268    |                             | 
|Increase in unallocated corporate costs |  |                              | (12    | )                           | 
|Proforma net income (loss)              |  |                              | (123   | )                           | 
|Earnings per share                      |  |                              |        |                             | 
|Basic                                   |  |                              | (0.03  | )                           | 
|Diluted                                 |  |                              | (0.03  | )                           | 

The interim consolidated financial information is unaudited.  In the
opinion of management, all adjustments and normally recurring accruals necessary to present fairly the financial condition of the Company as of March 31, 2003, and the results of operations and cash flows for the three months and nine months ended
March 31, 2003 and 2002 have been included. Interim results of operations are not necessarily indicative of the results of operations for the full year due to seasonality and other factors.

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THE SANDS REGENT AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) THREE AND NINE MONTHS ENDED MARCH 31, 2003
AND 2002

NOTE 2 - EARNINGS PER SHARE

The Company reports basic earnings per share and diluted earnings per
share in accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per Share.  Basic earnings per share is computed by dividing reported net earnings by the weighted average
number of common shares outstanding during the period.  Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stocks options. The following is a reconciliation of the number of shares
(denominator) used in the basic and diluted earnings per share computations (shares in thousands):

|                                 |  | THREE MONTHS ENDED MARCH 31, |       | NINE MONTHS ENDED MARCH 31, |  
|-------------------------------- |  | ---------------------------- | ----- | --------------------------- | -
|                                 |  |                              |       |                             |  
|                                 |  | 2002                         |       | 2003                        |  
|                                 |  |                              |       |                             |  
|                                 |  | Shares                       |       | Per Share Amount            |  
|                                 |  |                              |       |                             |  
|Net income (loss)                |  |                              | 4,526 |                             | $
|Effect of dilutive stock options |  |                              |      |                             |  
|Diluted                          |  |                              | 4,526 |                             | $

The Company had stock options in which the exercise price exceeded the average
market price for the three and nine month periods ended March 31, 2002.   The dilutive effect for the periods was 2,316 and 2,781 shares respectively.  These stock options were not used in the calculation of diluted earnings per share
as the Company reported losses for these periods.  In the three and nine months ended March 31, 2003, there were no antidilutive shares, all vested shares exceeded the average stock price for these periods.

NOTE 3 - ACQUISITION

On June 1, 2002, Last Chance completed an acquisition of certain assets (the Acquired Assets) of Prospector Gaming Enterprises, Inc.
(PGE), a Nevada corporation, pursuant to an Asset Purchase Agreement, dated as of December 27, 2001. Further, all of the outstanding members interest in California Prospectors was also acquired by Last Chance pursuant to the
Members Interest Purchase and Sales Agreement, dated December 27, 2001 (together, the Gold Ranch transaction).

The purchase price for the Acquired Assets consisted of $2.6
million in cash, 377,083 shares of common stock of The Sands Regent, a promissory note in the amount of $5.6 million made by Last Chance in favor of PGE, and $5.6 million of assumed debt, which was refinanced.  The cash paid in connection with
the transaction came from invested cash of the Company and borrowings by the Company under a 10-year revolving loan with the Reno Corporate Lending Division of Nevada State Bank. A complete disclosure of the Gold Ranch asset acquisition is presented
in the Companys 2002 Annual Report.

As a result of the Gold Ranch transaction, the Company added Goodwill and Other intangibles to its balance sheet as follows: Goodwill, $11 million;
Grand fathered in gaming location, $861 thousand; Tradename/ Trademark, $485 thousand; and Other, $10 thousand.  All Goodwill and Other Intangibles have been determined by the Company to have indefinite lives, and therefore are not
being amortized.

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THE SANDS REGENT AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) THREE AND NINE MONTHS ENDED MARCH 31, 2003
AND 2002

NOTE 4 - BUSINESS SEGMENTS

The Company reports business segment information based on geographic location.  The
following is a breakdown of relevant data by location. (Dollars in thousands)

|                                                          |  | THREE MONTHS  ENDED MARCH 31, |       | NINE MONTHS  ENDED MARCH 31, |  
|--------------------------------------------------------- |  | ----------------------------- | ----- | ---------------------------- | -
|                                                          |  |                               |       |                              |  
|                                                          |  | 2002                          |       | 2003                         |  
|                                                          |  |                               |       |                              |  
|Net revenues (Gross revenues less promotional allowances) |  |                               |       |                              |  
|Sands Regency Casino/Hotel                                |  | $                             | 7,551 |                              | $
|Gold Ranch Casino and R.V. Resort                         |  |                               |      |                              |  
|                                                          |  |                               |       |                              |  
|Total net revenues                                        |  | $                             | 7,551 |                              | $
|                                                          |  |                               |       |                              |  
|Operating income (loss)                                   |  |                               |       |                              |  
|Sands Regency Casino/Hotel                                |  | $                             | (122  | )                            |  
|Gold Ranch Casino and RV Resort                           |  |                               |      |                              |  
|Corporate costs                                           |  |                               | (32   | )                            |  
|                                                          |  |                               |       |                              |  
|Total consolidated operating income (loss)                |  | $                             | (154  | )                            | $
|                                                          |  |                               |       |                              |  
|Depreciation and amortization                             |  |                               |       |                              |  
|Sands Regency Casino/Hotel                                |  | $                             | 754   |                              | $
|Gold Ranch Casino and RV Resort                           |  |                               |      |                              |  
|                                                          |  |                               |       |                              |  
|Total consolidated depreciation and amortization          |  | $                             | 754   |                              | $
|                                                          |  |                               |       |                              |  

NOTE 5- RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In December 2002, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards      (SFAS) No. 148, Accounting for Stock-Based
Compensation - Transition and Disclosure, an amendment of FASB Statement No. 123 to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.  In
addition, SFAS No. 148 amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the
method used on reported results.  The amendments to the transition and transition and disclosure provisions are effective for financial statements for fiscal years ending after December 15, 2002 with early adoption encouraged.  The Company
does not anticipate making a change to the fair value based method of accounting for stock-based employee compensation, and does not anticipate that the adoption of the annual and interim disclosure requirements of SFAS No. 148 will have a material
impact on the consolidated financial statements.

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

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

The Sands Regent is parent company to the Sands Regency Casino Hotel in
Downtown Reno, Nevada and the Gold Ranch Casino and R.V. Resort On Interstate-80 in Verdi, Nevada.  The Sands Regency has 850 hotel rooms and 5 restaurants including Tony Romas, a Place for Ribs, Arbys, and Original Mels
Diner.  It has a full selection of gaming alternatives including 660 slot machines, 19 table games, keno, bingo, and a sportbook.  Additionally, the Sands Regency has a Just for Laughs comedy club, a cabaret lounge, health spa,
and a large outdoor pool.  The Gold Ranch offers 260 slot machines, a sportsbook, and a California lottery station on its property which straddles the Nevada/California stateline.  Additionally, it has a 105 space R.V. park, 2 restaurants,
and a high volume ARCO gas station and convenience store.

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 the Companys assets, the
determination of bad debt, self insurance reserves, asset impairment, calculation of income tax liabilities, and the purchase price allocation made in connection with the acquisition of Gold Ranch, 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.  To provide an  understanding of the methodologies applied, the Companys significant accounting policies are discussed where appropriate in this discussion and analysis.

Three and nine months ended March 31, 2003, as compared to the three and nine months ended March 31, 2002

CONSOLIDATED RESULTS.    For the three
months ended March 31, 2003,  the Companys net revenues (operating revenues less promotional allowances) increased from $7.6 million to $13.0 million, or 72%, from the three months ended March 31, 2002.  For the nine month period
ended March 31, 2003, the Companys net revenues increased from $24.1 million to $41.5 million, or 72%, from the same period in 2002.  The large increase in revenues was due primarily to the acquisition and consolidation of Gold Ranch
operations into the Company.

Consolidated income from operations was $194 thousand for the three months ended March 31, 2003, a $348 thousand improvement from a $154 thousand operating loss
reported in the three months ended March 31, 2002.  For the nine months ended March 31, 2003, consolidated income from operations was $2.7 million, compared to $533 thousand for the same period in 2002.

The Company generated a consolidated net income of $77 thousand, or 2 cents per share (1 cent diluted), for the three months ended March 31, 2003.  These results compare to a net loss of $379 thousand, or 8 cents per
share, for the same three months of 2002.   For the nine months ended March 2003, the Company had net income of $1.2 million, or 24 cents per share (23 cents diluted), compared to the $163 thousand net loss, or (4) cents per share, in the
nine months ended March 31, 2002.

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

SANDS REGENCY HOTEL AND CASINO.      For the three months ended March 31, 2003, the Sands Regency had net revenues of $7.4 million
compared to the $7.6 million for the same three month period of 2002.  The total casino revenues of $5.0 million for the quarter ended March 31, 2003 decreased from $5.2 million for the same period last year.  War uncertainty, a soft
economy, and other world events, including significantly higher gasoline prices, had a negative effect on Reno area tourism.

For the nine months ended March 31, 2003, the Sands Regency had net
revenues of $24.9 million, a 3.5% increase over the $24.1 million for the same nine month period of 2002.  The increase in net revenues for the Sands Regency was primarily attributable to an increase in casino revenues, and more specifically,
slot machine revenue, which increased $444 thousand, or 4.0%, for the comparative nine month period of the prior year.  Hotel room occupancy tracked 6.2% higher for the nine month period ended March 31, 2003 as compared to the nine months ended
March 31, 2002, a major reason for the casino revenue increase.

Despite slightly lower net revenues, the Sands Regency had a narrower operating loss of $103 thousand in the quarter ended March 31,
2003, than the $122 thousand operating loss for the quarter ended March 31, 2002. As has been the case throughout the current fiscal year, the Sands Regency realized cost savings related to a lower cost of complimentary rooms, food, beverage, and
merchandise given to casino customers.  Additionally, capital investments made in new slot machine related technology continues to show cost savings stemming from an associated reduction in labor hours.  The losses for both the March 2002
and 2003 quarters were due primarily to seasonality as fewer tourists travel to the Reno area in the winter.

For the nine month period ended March 31, 2003, gaming operating costs of $7.3 million
declined from the $7.6 million in the nine months ended March 31, 2002, despite the revenue increase.  Gaming cost savings were partially offset by general and administrative costs which are higher this year primarily due to an adjustment in
the provision for legal claims and the accrual of management bonuses which were cancelled last year when operating targets for the fiscal year became unlikely.  Income from operations for the current nine month period increased from $712
thousand to $1.5 million, a 112% year-over-year increase from the nine months ended March 31, 2002.

GOLD RANCH CASINO AND R.V. RESORT.      Net revenues for Gold Ranch
were $5.6 million for the quarter ended, and $16.6 million for the nine months ended, March 31, 2003.  The Company acquired Gold Ranch in June 2002, so there are no comparative revenues for the prior year.   The highest revenue
component at the Gold Ranch Property is a high volume ARCO gas station and convenience store.   A change in the price of gasoline can greatly influence total revenues but have a minimal impact on profitability.   The gas station
and convenience store contributed $3.9 million to Gold Ranch revenue for the three months, and $10.9 million for the nine months, ended March 31, 2003.   Gas prices, which increased to over $2.00 per gallon at the end of the quarter,
boosted gasoline revenue to the best gross receipts quarter of the fiscal year despite lower winter month gallon volume.

Slot machine revenue accounted for $1.4 million and $4.4 million of the
total revenues in the three and nine month periods ended March 31, 2003.  Since the Companys first full quarter of operation, slot machine volume, as measured by coin-in, was $28.5, $26.0, and $24.6 million sequentially by quarter,
further illustrating the result of anticipated seasonality.   Operating costs for the quarter ended March 31, 2003, were $5.2 million, a $600 thousand increase over the $4.6 million in the quarter ended December 31, 2002, entirely due to
the increased cost of wholesale gasoline.  Operating income for Gold Ranch was $366 thousand and $1.4 million for the three and nine month periods respectively.

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

CORPORATE COSTS.      Corporate costs, including public company reporting and related legal and accounting fees, were $70 thousand and
$270 thousand in the three and nine months ended December 31, 2002. This was higher than the $32 thousand and $179 thousand for the three and nine months ended March 31, 2003, due primarily to incremental costs associated with the addition of Gold
Ranch and to additional costs associated with public company disclosure requirements.

INTEREST INCOME AND EXPENSE.     Interest expense net of interest income was $287 thousand
and $951 thousand for the three and nine month periods ended March 31, 2003, respectively.  This represents an increase of $42 thousand and $264 thousand over the net interest expense reported in the three and nine month periods ended March 31,
2002.  The Companys debt balance has increased from $10.0 million as of March 31, 2002, to $15.0 million at March 31, 2003, a direct result of the Gold Ranch acquisition.

GAIN (LOSS) ON
DISPOSITION OF ASSETS/ PROJECT ABANDONMENT.      The Company experienced no gain or loss on disposal of property and equipment in the quarter ended March 31, 2003, as compared to the $183 thousand loss in the same quarter of
2002. Last year the Company had early disposition of assets mainly associated with the completion of a hotel room remodel project. In the nine months ended March 31, 2002, the Company had a net loss on disposition of assets of $119 thousand, an
amount less than the 3 month loss because of a net gain realized earlier in the year from an insurance claim.  The nine month current year loss on disposition of assets was due primarily to the early disposition of slot machines and the
writedown of a prospective new venture in Minden, Nevada, a project which is no longer actively being pursued.

GAIN ON SALE OF SUBSIDIARIES.     In both the three and
nine month periods ended March 31, 2003, the Company realized a $205 thousand gain stemming from its sale of the Copa Casino in Gulfport, Mississippi. The Company owned the Copa Casino and its related wholly-owned subsidiaries: Gulfside Casino,
Inc.; Gulfside Casino Partnership; Artemis, Inc.; and Patrician, Inc. (together the Copa) until December 1998.  The accounting treatment of this gain is consistent with the Companys initial decision to record a net note
receivable of only $2.3 million, an amount equal to its net investment in the Copa at the time of the sale. The original amount of the note was for $8.0 million and the unpaid balance as of March 31, 2003, was $5.6 million.  The note is
non-interest bearing and requires the Copa to pay to the Company monthly the greater of 2% of its gross gaming revenues, or $15 thousand, until paid in full. The Company feels it has perfected a lien on the newly remodeled Copa Casino, and since the
deal was finalized, monthly payments have been timely and well in excess of the minimum.  Based on recent payments,  the Company projects it will take between 6-8 years to collect on this note.  However, as of the date of this report,
because of competitive, regulatory, environmental, and other unknown potential risks facing the current operators of the Copa, the Company will continue to record gains only as payments are received.

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

Capital resources and liquidity

The Companys working capital decreased from $3.2 million at June
30, 2002 to $1.5 million at March 31, 2003.  The Companys cash and cash equivalents decreased from $5.6 million at June 30, 2002,  to $3.9 million at March 31, 2003, as the Company used cash reserves to reduce long term debt by $4.8
million.  Additionally, net cash used in investing activities was $1.9 million, $1.1 million of which represents completed payments on a capital outlay for slot machine product upgrades.  Cash flow from operations provided $5.0 million
during the nine month period ended March 31, 2003.  As of March 31, 2003, the Company had unused credit lines under its reducing revolving credit facility of $6.2 million.

At March 31, 2003,
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; 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 March 31, 2003.   Other than those identified as item (1) and (2) below, the Company has
no off-balance sheet obligations.

|                     |  | Total |            | Less than 1 year |   | 1 - 3 years |  | 4 - 5 years |           | After 5 years |  
|-------------------- |  | ----- | ---------- | ---------------- | - | ----------- |  | ----------- | --------- | ------------- | -
|                     |  |       |            |                  |   |             |  |             |           |               |  
|Long term debt       |  | $     | 15,027,835 |                  | $ | 806,199     |  | $           | 1,612,696 |               | $
|Operating leases (1) |  |       | 5,270,834  |                  |   | 575,000     |  |             | 1,150,000 |               |  
|Other (2)            |  |       | 1,715,194  |                  |   | 197,473     |  |             | 406,230   |               |  
|                     |  |       |            |                  |   |             |  |             |           |               |  
|                     |  | $     | 22,013,863 |                  | $ | 1,578,672   |  | $           | 3,168,926 |               | $
|                     |  |       |            |                  |   |             |  |             |           |               |  

|(1) | Represents contractual lease obligations to 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 significant expansion of the gaming facilities.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                          
|(2) | Represents management fees due to PGE in connection with the R.V. Park at Gold Ranch.  The table reflects a scheduled 20% increase effective June 1, 2003, in accordance
with the management agreement.  Additionally, future amounts payable are subject to adjustment based on changes in interest rates.                                                                              

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

Cautionary note regarding forward looking statements

This Annual Report on Form 10-K 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 contains 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.

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 as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission:

| | the effect of economic, credit and capital market conditions on the economy in  general, and on gaming and hotel companies in particular;                                                                       
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | our ability to timely and cost effectively integrate into our operations the companies and assets that we acquire;                                                                                              
| | access to available and feasible financing;                                                                                                                                                                     
| | changes in laws or regulations, third party relations and approvals, and decisions of courts, regulators and governmental bodies; including judicial actions, gaming legislative
action, referenda and taxation;
| | abnormal gaming holds;                                                                                                                                                                                          
| | the effects terrorists attacks or war may have on the gaming industry; and                                                                                                                                      
| | the effects of competition, including locations of competitors and operating and market competition.                                                                                                            

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.

Other factors affecting current and future results

NATIVE AMERICAN GAMING.     The expansion of Native American casinos in California, Oregon, and Washington continues to have an impact on casino revenues in Nevada in general, and some analysts have
predicted the impact will be more significant on the Reno-Tahoe market.  The extent of the impact to the Company is difficult to predict.  A significant portion of the Companys customer base is made up of Reno area residents. 
However, if other Reno area casinos lose business due to competition from Native American casinos, they may intensify their marketing efforts to Reno area residents as well.

DOWNTOWN RENO RAILROAD
TRENCH.    Currently, Union Pacifics railroad tracks dissect downtown Reno, as well as the Sands Regencys parking facilities. After years of analysis and debate, and despite considerable opposition, proponents of digging a
trench through downtown Reno for the purpose of constructing a below-grade rail transport corridor have been successful.  Utility relocation is currently underway, and large-scale escavation on the trench, known as ReTRAC (Reno Transportation
Railroad Access Corridor), is anticipated to begin in the fall of 2003.

Recent estimates have the trench project taking from 3 to 4 years to be completed.  The Company has been informed that
over 300 valuable parking spaces will be unavailable during the construction.  A small number of spaces and Sands overpass structure will be permanently lost.  The law requires that the Sands be given alternate parking or
compensation for spaces and structures permanently or temporarily lost due to the project.

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THE SANDS REGENT AND SUBSIDIARIES MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THREE AND NINE MONTHS
ENDED MARCH 31, 2003 AND 2002

The effect of trench construction on downtown Renos business levels, and specifically the business levels of the Sands, is hard to quantify, as any
potential downside due to customer inconvenience could be offset by opportunities, such as the effect this major construction project will have on the Reno area economy.   In light of these uncertainties, the Company feels no assurance can
be given that this project will not have an adverse material impact on the business levels of its downtown Reno property.

Item 3. 
Quantitative and Qualitative Disclosures About Market Risk

The Companys long-term debt is variable relative to changes in interest rates.  Specifically, the
interest rate of the Companys primary debt, a reducing, revolving credit facility through Nevada State Bank, is currently fixed at 7.17% per annum.  However, effective June 1, 2007, the interest rate will be adjusted to a new five-year
fixed rate of 2.40% plus the five-year U.S. Dollar Swap Market rate.  At the time of this rate adjustment, the maximum principal balance of this obligation will be $8.5 million.  Accordingly, each 1% rate adjustment at that time will have
a maximum impact to the Company of $85 thousand per year.

Additionally, the interest rate of the Companys subordinated debt, which has a principal balance of $4.9 million at March 31, 2003,
varies directly with a change in the Prime index.  A full percentage point change in the Prime index will have a maximum yearly financial impact of less than $49 thousand, declining as principal is paid down.  This subordinated debt is
limited to a maximum increase or decrease of 1% per year, and a maximum fluctuation of 3% over the term of the note.

Finally, terms of the Companys R.V. Park management agreement with PGE,
referenced as (2) in the Commitments and Contingencies section of this Report, state that the Company pay monthly an amount equal to PGEs debt service on the underlying R.V. Park note, which varies directly with changes in the Prime
index.  On June 1, 2003, this management fee increases to 120% of that monthly debt service for the remaining life of the agreement.  The financial impact to the Company of a full one percent increase in the Prime index is less than $25
thousand per year.  The Company does not use interest rate derivative instruments to manage exposure to interest rate changes.  A more complete discussion of these debt instruments is included in the Companys 2002 Annual
Report.

Item 4. 
Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the
Companys Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and that such information is accumulated and communicated to the Companys management,
including its Principal Executive Officer and Principal Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure.  In designing and evaluating the disclosure controls and procedures, management recognized that
any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures.

Within 90 days prior to the date of this report, the Company carried out an evaluation, under the supervision and with the participation of the
Companys management, including the Companys Principal Executive Officer and Principal Accounting Officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures.  Based on the
foregoing, the Companys Principal Executive Officer and Principal Accounting Officer concluded that the Companys disclosure controls and procedures were effective. There have been no significant changes in the Companys internal
controls or in other factors that could significantly affect the internal controls subsequent to the date the Company completed its evaluation.

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THE SANDS REGENT AND SUBSIDIARIES

PART II 
OTHER INFORMATION

Item 1. 
Legal Proceedings

The Company is party to various lawsuits, which have arisen in the normal course of its business.  At the time of this filing, the liability
arising from unfavorable outcomes of lawsuits is not expected to have a material impact on the Companys financial condition or financial results.

Item 2. 
Changes in Securities

Not applicable

Item 3. 
Defaults Upon Senior Securities

Not applicable

Item 4. 
Submission of Matters to a Vote of Security Holders

Not applicable

Item 5. 
Other Information

None

Item 6. 
Exhibits and Reports on Form 8-K

|Exhibit 99.1 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                    
|------------ | ----------------------------------------------------------------------------------------------------------------------------
|Exhibit 99.2 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,                         
|Exhibit 99.3 | Certification of Chief Operating and Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

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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: May 14, 2003 | By: | /s/ FERENC B. SZONY                                                 
|                   |     |                                                                     
|                   |     | Ferenc B. Szony, President and Chief Executive Officer              
|                   |     |                                                                     
|Date: May 14, 2003 | By: | /s/ ROBERT J. MEDEIROS                                              
|                   |     |                                                                     
|                   |     | Robert J. Medeiros, Chief Operating and Principal Accounting Officer