<PAGE>

===============================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                 -------------

                                   FORM 10-Q

(Mark One)
 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---                               ACT OF 1934
               For the Quarterly Period Ended September 30, 1999

                                       OR


       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---                          EXCHANGE ACT OF 1934
       For the Transition Period from                  to
                                      ----------------    -------------------

<TABLE>
<CAPTION>
                                    Commission file number 333-4356

                                          COAST RESORTS, INC.
                         (Exact name of registrant as specified in its charter)
<S>                                                      <C>
Nevada                                                                    88-0345704
(State or other jurisdiction of                                         (I.R.S. Employer
incorporation or organization)                                       identification number)

                            4500 West Tropicana Avenue, Las Vegas, Nevada 89103
                             (Address of principal executive offices) (Zip Code)
                                                (702) 365-7000
                            (Registrant's telephone number, including area code)
                                                    None
                 (Former name, former address and former fiscal year, if changed since last report.)
</TABLE>

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.    Yes  X    No
                                                -----    -----

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

   Shares of Common Stock outstanding as of September 30, 1999: 1,478,978


===============================================================================
<PAGE>

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements.


                      COAST RESORTS, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                   (amounts in thousands, except share data)

<TABLE>
<CAPTION>
                                                                            September 30,                      December 31,
                                                                                 1999                              1998
                                                                        ------------------              -----------------------
                                                                            (unaudited)
                              ASSETS

CURRENT ASSETS:
<S>                                                                   <C>                                   <C>
 Cash and cash equivalents......................................        $           39,635                    $          41,598
 Accounts receivable, net.......................................                     4,782                                4,301
 Other current assets...........................................                    20,285                               14,032
                                                                        ------------------                    -----------------
 TOTAL CURRENT ASSETS...........................................                    64,702                               59,931
PROPERTY AND EQUIPMENT, net.....................................                   314,591                              301,252
OTHER ASSETS....................................................                     8,854                                5,644
                                                                        ------------------                    -----------------
                                                                        $          388,147                    $         366,827
                                                                        ==================                    =================
                              LIABILITIES AND
                            STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Accounts payable...............................................        $           10,697                    $           9,888
 Accrued liabilities............................................                    29,896                               25,769
     Accrued interest expense...................................                     8,702                                1,207
 Current portion of long-term debt..............................                       323                                7,905
                                                                        ------------------                    -----------------
 TOTAL CURRENT LIABILITIES......................................                    49,618                               44,769
LONG-TERM DEBT, less current portion............................                   231,199                              199,954
DEFERRED INCOME TAXES...........................................                     3,283                                6,654
DEFERRED RENT...................................................                    15,659                               13,024
                                                                        ------------------                    -----------------
 TOTAL LIABILITIES..............................................                   299,759                              264,401
                                                                        ------------------                    -----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
 Preferred stock, $.01 par value, 500,000 shares authorized,
    none issued and outstanding.................................                        --                                   --
 Common stock, $.01 par value, 2,000,000 shares authorized,
   1,478,978 shares issued and outstanding......................                        15                                   15
 Additional paid-in capital.....................................                    95,398                               95,398
 Treasury stock.................................................                    (1,538)                                  --
 Retained earnings (deficit)....................................                    (5,487)                               7,013
                                                                        ------------------                    -----------------
 TOTAL STOCKHOLDERS' EQUITY.....................................                    88,388                              102,426
                                                                        ------------------                    -----------------
                                                                        $          388,147                    $         366,827
                                                                        ==================                    =================
</TABLE>

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

                                       1
<PAGE>

                      COAST RESORTS, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     For the Three Months and Nine Months Ended September 30, 1999 and 1998
           (amounts in thousands, except share and per share amounts)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended                             Nine Months Ended
                                                               September 30,                                 September 30,
                                                    --------------------------------          --------------------------------
                                                         1999              1998                    1999              1998
                                                    ------------         -----------          ------------         -----------
OPERATING REVENUES:
<S>                                                 <C>                  <C>                      <C>              <C>
 Casino.......................................       $   64,813           $   61,050           $   195,435       $   178,084
 Food and beverage............................           17,767               16,426                53,353            49,187
 Hotel........................................            7,157                6,919                22,489            21,145
 Other........................................            7,246                6,579                21,441            18,658
                                                    ------------         -----------          ------------         -----------
   GROSS OPERATING REVENUES...................           96,983               90,974               292,718           267,074
 Less:  promotional allowances................           (8,603)              (7,903)              (25,713)          (23,006)
                                                    ------------         -----------          ------------         -----------
   NET OPERATING REVENUES.....................           88,380               83,071               267,005           244,068
                                                    ------------         -----------          ------------         -----------
OPERATING EXPENSES:
 Casino.......................................           33,097               31,967                97,195            93,851
 Food and beverage............................           12,929               11,794                37,359            35,356
 Hotel........................................            3,441                3,278                 9,696             9,000
 Other........................................            6,405                6,080                18,352            16,068
 General and administrative...................           16,549               16,090                47,570            43,925
 Deferred rent................................              519                1,004                 2,398             3,013
 Pre-opening expenses.........................               78                   --                    78                --
 Depreciation and amortization................            5,528                5,193                16,056            15,398
                                                    ------------         -----------          ------------         -----------
   TOTAL OPERATING EXPENSES...................           78,546               75,406               228,704           216,611
                                                    ------------         -----------          ------------         -----------
OPERATING INCOME..............................            9,834                7,665                38,301            27,457
                                                    ------------         -----------          ------------         -----------
OTHER INCOME (EXPENSES)
 Interest expense, net........................           (5,097)              (6,727)              (16,583)          (20,069)
 Interest capitalized.........................              160                   --                   160                --
 Gain (loss) on disposal of assets............              (23)                  15                    (9)              157
                                                    ------------         -----------          ------------         -----------
TOTAL OTHER INCOME (EXPENSES).................           (4,960)              (6,712)              (16,432)          (19,912)
                                                    ------------         -----------          ------------         -----------
INCOME BEFORE INCOME TAXES AND EXTRAORDINARY
ITEM                                                      4,874                  953                21,869             7,545
                                                    ------------         -----------          ------------         -----------
Income tax provision..........................            1,396                  529                 7,362             2,752
                                                    ------------         -----------          ------------         -----------
NET INCOME BEFORE EXTRAORDINARY ITEM..........            3,478                  424                14,507             4,793
                                                    ------------         -----------          ------------         -----------
Extraordinary item - loss on early retirement of
 debt, net of applicable
income tax benefit ($14,543)..................               --                   --               (27,007)               --
                                                    ------------         -----------          ------------         -----------
NET INCOME (LOSS).............................       $    3,478          $       424           $   (12,500)        $   4,793
                                                    ------------         -----------          ------------         -----------
Basic and diluted income before extraordinary
 item.........................................       $     2.35          $       .28           $      9.76        $     3.21
                                                    ------------         -----------          ------------         -----------
Basic and diluted net income (loss)...........       $     2.35          $       .28           $     (8.41)       $     3.21
                                                    ------------         -----------          ------------         -----------
SHARES USED IN COMPUTATION
OF BASIC AND DILUTED INCOME (LOSS) PER SHARE..        1,481,572            1,494,353             1,487,452         1,494,353
                                                    ============         ===========          ============         ===========
</TABLE>

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

                                       2
<PAGE>

                      COAST RESORTS, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             For the Nine Months Ended September 30, 1999 and 1998
                             (amounts in thousands)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                                                   Nine Months Ended
                                                                                                     September 30,
                                                                                    -------------------------------------------
                                                                                            1999                    1998
                                                                                    ----------------      ---------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                               <C>                        <C>
 Net income (loss)..........................................................        $        (12,500)          $          4,793
                                                                                    ----------------           ----------------
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET
   CASH PROVIDED BY OPERATING ACTIVITIES:
   Depreciation and amortization............................................                  16,056                     15,398
   Provision for bad debts..................................................                     186                        352
   Loss (gain) on disposal of assets........................................                       9                       (157)
   Deferred income taxes....................................................                  (3,578)                      (180)
   Deferred rent............................................................                   2,635                      3,013
   Loss on early retirement of debt.........................................                  41,550                         --
   Other non-cash expenses..................................................                     124                        484
   Changes in assets and liabilities:
     Net (increase) decrease in accounts receivable and other assets........                  (6,856)                       851
     Net increase in accounts payable and accrued liabilities...............                  12,431                      4,042
                                                                                    ----------------           ----------------
 TOTAL ADJUSTMENTS..........................................................                  62,557                     23,803
                                                                                    ----------------           ----------------
 NET CASH PROVIDED BY OPERATING ACTIVITIES..................................                  50,057                     28,596
                                                                                    ----------------           ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures.......................................................                 (28,842)                   (10,231)
 Proceeds from disposal of assets...........................................                      27                        157
                                                                                    ----------------           ----------------
 NET CASH USED IN INVESTING ACTIVITIES......................................                 (28,815)                   (10,074)
                                                                                    ----------------           ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of long-term debt, net of issuance costs............                 167,808                         --
 Early retirement of debt...................................................                (223,017)                        --
 Principal payments on long-term debt.......................................                 (15,468)                    (5,942)
 Proceeds from borrowings under bank line of credit.........................                  63,010                         --
     Repayments of borrowings under bank line of credit.....................                 (14,000)                        --
 Repurchase of common stock.................................................                  (1,538)                        --
                                                                                    ----------------           ----------------
 NET CASH USED IN FINANCING ACTIVITIES......................................                 (23,205)                    (5,942)
                                                                                    ----------------           ----------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS........................                  (1,963)                    12,580
CASH AND CASH EQUIVALENTS, at beginning of period...........................                  41,598                     29,430
                                                                                    ----------------           ----------------
CASH AND CASH EQUIVALENTS, at end of period.................................        $         39,635           $         42,010
                                                                                    ================           ================
</TABLE>

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

                                       3
<PAGE>

                              COAST RESORTS, INC.
                CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                    For the Year Ended December 31, 1998 and
            For the Nine Months Ended September 30, 1999 (unaudited)
                             (dollars in thousands)


<TABLE>
<CAPTION>

                                        Common Stock                              Retained
                                     ------------------          Additional       Earnings       Treasury
                                      Shares       Amount      Paid-In Capital    (Deficit)        Stock           Total
                                     ---------    --------     ---------------    ----------     -----------     -----------
<S>                                  <C>          <C>          <C>                 <C>           <C>             <C>
Balances at December 31, 1997....    1,494,353    $   15       $   95,398         $   (974)      $     --        $    94,439
 Net income......................           --        --               --            7,987             --              7,987
                                     ---------    --------     ---------------    ----------     -----------     -----------
Balances at December 31, 1998....    1,494,353        15           95,398            7,013             --            102,426
 Repurchase of common stock......      (15,375)       --               --               --         (1,538)            (1,538)
 Net loss........................           --        --               --          (12,500)            --            (12,500)
                                     ---------    --------     ---------------    ----------     -----------     -----------
Balances at September 30, 1999...    1,478,978    $   15       $   95,398         $ (5,487)      $ (1,538)       $    88,388
                                     ---------    --------     ---------------    ----------     -----------     -----------
</TABLE>

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

                                       4
<PAGE>

                              COAST RESORTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BACKGROUND INFORMATION AND BASIS OF PRESENTATION

Background Information

     Coast Resorts, Inc. ("Coast Resorts" or the "Company") is a Nevada
corporation and serves as a holding company for Coast Hotels and Casinos, Inc.
("Coast Hotels").  Through Coast Hotels, we own and operate three Las Vegas
hotel-casinos and are developing a fourth.

     .  The Orleans Hotel and Casino is located approximately one mile west of
        the Las Vegas Strip on Tropicana Avenue.

     .  The Gold Coast Hotel and Casino is located approximately one mile west
        of the Las Vegas Strip on Flamingo Road.

     .  The Barbary Coast Hotel and Casino is located on the Las Vegas Strip.

     .  On July 1, 1999, we began construction of the Suncoast Hotel and Casino
        near Summerlin in the west end of the Las Vegas valley. The Suncoast,
        with a construction budget of $185 million, is expected to open in
        September 2000.

     The Gold Coast and Barbary Coast hotel-casinos were, prior to January 1996,
owned and operated independently by two partnerships, Gold Coast Hotel and
Casino, a Nevada limited partnership, and Barbary Coast Hotel and Casino, a
Nevada general partnership.  On January 1, 1996, the partners of the two
partnerships completed a reorganization (the "Reorganization") with Coast
Resorts.  Coast Resorts was formed in September 1995 to effect the
Reorganization.  Coast Resorts, Gold Coast and Barbary Coast were all related
through common ownership and management control.

     In the Reorganization, the partners of the Gold Coast partnership and the
Barbary Coast partnership transferred their respective partnership interests to
Coast Resorts in exchange for an aggregate of 1,000,000 shares of common stock,
par value $.01 per share, of Coast Resorts ("Coast Resorts Common Stock").
Coast Resorts immediately contributed to Coast Hotels all of the assets and
liabilities of the Predecessor Partnerships other than those relating to the
Coast West Lease (as defined herein), which Coast Resorts contributed to its
wholly owned subsidiary, Coast West, Inc. ("Coast West").  On March 23, 1999,
Coast West was merged into Coast Hotels.  The Coast West Lease is a long-term
lease on approximately 50 acres of land in Las Vegas on which the Company is
developing a new hotel-casino, the Suncoast.  Coast Resorts retained the
liability for an aggregate principal amount of $51.0 million in notes payable to
former partners and retained the liability for $1.5 million relating to demand
notes due to a related party (the "Exchange Liabilities").  On January 16, 1996,
the Exchange Liabilities were exchanged for 494,353 shares of Coast Resorts
Common Stock, based upon management's estimate of the fair market value of such
Coast Resorts Common Stock.

                                       5
<PAGE>

                              COAST RESORTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Basis of Presentation

     The accompanying financial statements are unaudited and have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with Article 10 of Regulation S-X.  Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  The unaudited
financial statements should be read in conjunction with the audited financial
statements and footnotes for the year ended December 31, 1998.  In the opinion
of management, all adjustments and normal recurring accruals considered
necessary for a fair presentation of the results for the interim period have
been included.  The interim results reflected in the unaudited financial
statements are not necessarily indicative of expected results for the full year.

NOTE 2 - LONG-TERM DEBT

  Long-term debt consists of the following as of September 30, 1999 and December
31, 1998:


<TABLE>
<CAPTION>
                                                                             September 30,            December 31,
                                                                                 1999                     1998
                                                                        --------------------     --------------------
<S>                                                                     <C>                       <C>
                                                                            (in thousands)
9.5% senior subordinated notes due April 2009......................          $       175,000          $            --

$200.0 million, reducing revolving credit facility due 2004,
   collateralized by substantially all of the assets of Coast
    Hotels                                                                            50,000                       --
   and Casinos, Inc................................................

13% First Mortgage Notes due December 15, 2002, net of original
   issue discount of $3,971,000 (1998).............................                    1,960                  171,029

10-7/8% First Mortgage Notes due November 1, 2001..................                       --                   16,800

9.19% note payable, payable in 60 monthly installments of
 approximately $750,000, including principal and interest,
 collateralized by certain gaming and other equipment, balance
 paid in full June 1999............................................                       --                   14,987




8.6% note due August 11, 2007, payable in monthly installments of
 $26,667 principal plus interest on remaining principal balance,
 collateralized by 1980 Hawker aircraft............................                    2,533                    2,773



Other notes payable................................................                    2,029                    2,270
                                                                        --------------------     --------------------
                                                                                     231,522                  207,859
Less: current portion..............................................                      323                    7,905
                                                                        --------------------     --------------------
                                                                             $       231,199          $       199,954
                                                                        ====================     ====================
</TABLE>

                                       6
<PAGE>

                              COAST RESORTS, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - LONG-TERM DEBT (continued)

     In March 1999, Coast Hotels issued $175.0 million principal amount of 9.5%
senior subordinated notes with interest payable on April 1 and October 1
beginning October 1, 1999 and entered into a $75 million senior secured
revolving credit facility due 2004 to facilitate a refinancing. Borrowings under
the credit facility are guaranteed by the Company. Availability under the credit
facility was increased to $200 million in September 1999, subject to
satisfaction of several conditions which were met subsequent to September 1999.
Borrowings under the credit facility bear interest, at Coast Hotels' option, at
a premium over the one-, two-, three- or six-month London Interbank Offered Rate
("LIBOR"). As of September 30, 1999 the interest rate was 7.41%. Coast Hotels
incurs a commitment fee, payable quarterly in arrears, on the unused portion of
the credit facility. This variable fee is currently at the maximum rate of 0.5%
per annum times the average unused portion of the facility.

     With the proceeds from the senior subordinated notes and borrowings under
the credit facility, Coast Hotels repurchased substantially all of the $175.0
million principal amount outstanding of 13% first mortgage notes and all $16.8
million principal amount outstanding of 10-7/8% first mortgage notes and amended
the indenture under which the 13% first mortgage notes were issued to eliminate
substantially all of its restrictive covenants. Approximately $2.0 million in
principal amount of the 13% first mortgage notes remain outstanding and are
governed by the terms of the amended indenture. In connection with the
repurchase of the 13% notes and the 10-7/8% notes, Coast Hotels incurred
repurchase premiums of $31.0 million and $2.1 million, respectively. The
repurchase premiums and the write-offs of unamortized debt issuance costs and
original issue discount resulted in an extraordinary loss of $27.0 million, net
of applicable income tax benefit of $14.5 million.

     The availability under the $200.0 million credit facility will be reduced
in quarterly amounts beginning in the fiscal quarter ending September 30, 2001.
The initial advance of $47.0 million under the new credit facility was used in
connection with the repurchase of the 13% first mortgage notes and the 10-7/8%
first mortgage notes. Subsequent advances under the new credit facility may be
used for working capital, general corporate purposes, construction of the
Suncoast and certain improvements to our existing properties. As of September
30, 1999, we had borrowed $50.0 million under the $200.0 million credit
facility.

NOTE 3 - TREASURY STOCK

     In May 1999, our board of directors authorized the potential repurchase of
up to 50,000 shares of common stock from stockholders at a maximum aggregate
repurchase price of $5.0 million.  Through September 30, 1999, we repurchased a
total of 15,375 shares of common stock from shareholders at a total purchase
price of $1.5 million.

                                       7
<PAGE>

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

Results of Operations

     The following table sets forth, for the periods indicated, certain
financial information regarding the results of operations of the Company:


<TABLE>
<CAPTION>
                                                          Three Months Ended                      Nine Months Ended
                                                             September 30,                            September 30,
                                                  --------------------------------          --------------------------------
                                                      1999                 1998                 1999                 1998
                                                  ------------        ------------          -------------       ------------

<S>                                               <C>                 <C>                    <C>                 <C>
Hotel-casino operations:
 Net operating revenues........................   $   88,380           $    83,071           $    267,005        $   244,068
 Operating expenses............................       77,005                73,153                222,336            209,837
                                                  ------------        ------------          -------------       ------------
Operating income from hotel-casino operations..       11,375                 9,918                 44,669             34,231
Corporate expenses (1).........................        1,541                 2,253                  6,368              6,774
                                                  ------------        ------------          -------------       ------------
Total operating income.........................   $    9,834           $     7,665           $     38,301         $   27,457
                                                  ============        ============         ==============       ============

EBITDA, hotel-casino operations (2)............   $   17,172           $    15,328           $     61,477         $   50,281
                                                  ------------        ------------          -------------       ------------

EBITDA, total (including corporate) (2)........   $   15,959           $    13,862           $     56,833         $   45,868
                                                  ------------        ------------          -------------       ------------
</TABLE>
(1)  Corporate expenses include corporate general and administrative expenses,
     depreciation and amortization, pre-opening expenses and, prior to July 1,
     1999, land lease expenses, both cash and deferred, on the Suncoast land.
     Suncoast land lease expenses subsequent to July 1, 1999, the date we
     commenced construction on the Suncoast, are being capitalized.

(2)  "EBITDA" means earnings before interest, taxes, depreciation, amortization,
     deferred (non-cash) rent expense and certain non-recurring items, including
     pre-opening expenses.  EBITDA should not be construed as an alternative to
     operating income or net income, as determined in accordance with generally
     accepted accounting principles, as an indicator of the Company's operating
     performance, or as an alternative to cash flows generated by operating,
     investing and financing  activities, as determined in accordance with
     generally accepted accounting principles, as an indicator of cash flows or
     a measure of liquidity.  EBITDA is presented solely as supplemental
     disclosure because management believes that it is a widely used measure of
     operating performance in the gaming industry.  All companies do not
     calculate EBITDA in the same manner.  As a result, EBITDA as presented here
     may not be comparable to a similarly titled measure presented by other
     companies.

Three Months Ended September 30, 1999 Compared to Three Months Ended September
30, 1998 and Nine Months Ended September 30, 1999 Compared to Nine Months Ended
September 30, 1998

     Net revenues in the quarter ended September 30, 1999 were $88.4 million
compared to $83.1 million in the same quarter in 1998, an increase of 6.4%.  For
the first nine months of 1999, net revenues were $267.0 million, an increase of
9.4% over revenues of $244.1 million in the same period in 1998.  Third quarter
operating income was $9.8 million compared to $7.7 million in 1998, an increase
of 28.3%. For the nine months ended September 30, 1999, operating income was
$38.3 million, an increase of 39.5% over operating income of $27.5 million in
the same period in 1998. Net income for the quarter ended September 30, 1999 was
$3.5 million compared to $424,000 in the same quarter of 1998. An extraordinary
item of $27.0 million, net of income tax benefit, from the early retirement of
debt in the quarter ended March 31, 1999, resulted in a net loss of $12.5
million in the first nine months of 1999, compared to net income of $4.8 million
in the first nine

                                       8
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Results of Operations (Continued)

months of 1998.  Net income before extraordinary item for the nine months ended
September 30, 1999 was $14.5 million compared to $4.8 million in the same period
in 1998.

     Casino.  Casino revenues in the quarter ended September 30, 1999 were $64.8
million, an increase of 6.2% compared to casino revenues of $61.0 million in the
same quarter in 1998.  The increase was primarily due to a 16.4% increase in
slot revenues at The Orleans.  Slot revenues also increased at both the Gold
Coast and Barbary Coast, but table games win percentages were lower than
historical averages at all three properties in the quarter.  In the nine months
ended September 30, 1999, casino revenues were $195.4 million, an increase of
9.7% over 1998 revenues of $178.1 million.  The increase was due primarily to
increased slot revenues at The Orleans, Gold Coast and Barbary Coast, which were
up 24.0%, 6.8% and 16.4%, respectively.

     Casino expenses in the quarter ended September 30, 1999 increased by 3.5%
over the same quarter in 1998, primarily due to wage increases in July at all
three properties.  The casino operating margin increased to 48.9%  compared to
47.6% in the third quarter of 1998.  For the nine months ended September 30,
1999, casino expenses increased 3.6%, primarily due to increased promotional
expenses and the wage increases discussed above.  The casino operating margin
increased to 50.3% from 47.3% in the nine months ended September 1998.

     Food and Beverage.  Food and beverage revenues were $17.8 million in the
third quarter of 1999 compared to $16.4 million in 1998, an increase of 8.2%.
The increase was due primarily to the new buffet at The Orleans, which opened in
May 1999.  For the nine months ended September 30, 1999, food and beverage
revenues were $53.4 million, increasing 8.5% over 1998 revenues of $49.2 million
in the same period, primarily due to increased buffet revenues at The Orleans.

     Food and beverage expenses were $12.9 million in the third quarter of 1999
compared to $11.8 million in the third quarter of 1998, an increase of 9.6%.
Third quarter food and beverage operating margin declined to 27.2% from 28.2% in
the prior year, primarily as a result of the higher labor costs and cost of
sales related to the new buffet at The Orleans.  For the nine months ended
September 30, 1999, food and beverage expenses increased 5.7%.  While the higher
operating costs related to the new buffet at The Orleans may affect operating
margins on a going-forward basis, the food and beverage operating margin in the
first nine months of 1999 improved to 30.0% compared to 28.1% in 1998.

     Hotel.  Hotel room revenues were $7.2 million in the three months ended
September 30, 1999, an increase of 3.4% over 1998 revenues of $6.9 million.
Each of our three hotel properties continued to experience strong room occupancy
percentages, with a combined occupancy rate of 96.3% for the quarter compared to
95.8% in the third quarter of 1998.  In addition, average daily room rates were
slightly higher in the quarter compared to the prior year.  For the nine months
ended September 30, 1999, hotel room revenues were $22.5 million compared to
$21.1 million in the first nine months of 1998.  The combined occupancy rate for
our three hotel properties for the first nine months of 1999 was 96.3% compared
to 92.5% in 1998.  For the nine month period, average daily room rates at each
of our hotel properties were slightly higher than in the first nine months of
1998.

     Other.  Other revenues were $7.2 million for the three months ended
September 30, 1999, an increase of 10.1% over 1998 other revenues of $6.6
million, primarily due to the opening of a liquor store in the expansion of The
Orleans, as well as increased rental income due to higher movie theater revenues
at that property. Costs related to the other revenues increased 5.3% in the
period due to expenses related to the new liquor store.  For the nine months
ended September 30, 1999, other revenues increased 14.9% to $21.4 million
compared to $18.7 million in the first nine months of 1998, primarily due to
increased revenues at the Gold Coast and The Orleans showrooms, bowling centers,
gift shops and liquor stores. Costs related to the other revenues increased
14.5% in the nine months ended September 30, 1999, in line with the increase in
revenues.

                                       9
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Results of Operations (Continued)

     General and Administrative.  General and administrative expenses were $16.5
million in the third quarter of 1999, an increase of 3.0% over 1998 expenses of
$16.1 million.  The increase was due, in part, to wage increases at our three
hotel-casinos.  For the nine months ended September 30, 1999, general and
administrative expenses were $47.6 million compared to $43.9 million in the same
period in 1998, an increase of 8.3%.  In addition to wage increases, an
expansion completed at The Orleans in May 1999 resulted in higher utility costs
and increased staffing in several ancillary departments.

     Deferred Rent.  Deferred rent in the third quarter of 1999 decreased from
$1.0 million in 1998 to $519,000 in 1999 as we began capitalizing rent expense
for the land upon which we started construction of the Suncoast on July 1, 1999.
For the nine months ended September 30, 1999, deferred rent expense was $2.4
million compared to $3.0 million in the same period in 1998.

     Interest expense. Interest expense was lower in the third quarter and in
the first nine months of 1999 compared to the same periods in 1998, primarily as
a result of our debt refinancing in March 1999.  The refinancing reduced the
weighted average interest rate on our outstanding indebtedness to approximately
9.0% from approximately 12.4% at December 31, 1998.  In connection with the
commencement of construction of the Suncoast on July 1, 1999, we began to
capitalize interest expense during the third quarter.

Liquidity and Capital Resources

     Our principal sources of liquidity have consisted of cash provided by
operating activities and debt financing. Cash provided by operating activities
was $50.1 million in the nine months ended September 30, 1999, compared to
$28.6 million in the same period in 1998. The increase was due primarily to
the increased operating income of Coast Hotels.

     Our estimated cash requirements for 1999 include interest payments on
outstanding indebtedness and principal payments of approximately $15.6 million
on equipment notes payable, $15.5 million of which was paid in the nine months
ended September 30, 1999. Additional cash requirements include land lease
payments of approximately $4.6 million, including $3.4 million paid in the nine
months ended September 30, 1999, and budgeted capital expenditures at our
existing properties of approximately $24.6 million. Of the budgeted capital
expenditures, we incurred $19.4 million in the nine months ended September 30,
1999, including $10.6 million related to an expansion project at The Orleans
which was completed in May 1999. Included in the $24.6 million capital
expenditure budget is $11.0 million for maintenance capital expenditures,
including $8.8 million expended in the first nine months.

     In July 1999, we began construction of our newest hotel-casino, the
Suncoast, which has an estimated construction and development budget of $185.0
million and an estimated completion date of September 2000.  We have expended
$12.7 million on the Suncoast project, including $9.4 million in the first nine
months of 1999.  For the remainder of 1999, we estimate additional expenditures
related to the Suncoast construction will total approximately $30.0 million.

                                       10
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Liquidity and Capital Resources (Continued)

     We believe that existing cash balances, operating cash flow and available
borrowings under our $200.0 million credit facility will provide sufficient
resources to meet our debt and lease payment obligations, foreseeable capital
expenditure requirements at our existing properties and the construction and
development of the Suncoast.

     In March 1999, Coast Hotels issued $175.0 million principal amount of 9.5%
senior subordinated notes with interest payable on April 1 and October 1
beginning October 1, 1999 and entered into a $75.0 million senior secured
revolving credit facility due 2004 to facilitate a refinancing. Availability
under the credit facility was increased to $200 million in September 1999,
subject to satisfaction of several conditions which were met subsequent to
September 1999. Borrowings under the credit facility bear interest, at Coast
Hotels' option, at a premium over the one-, two-, three- or six-month London
Interbank Offered Rate ("LIBOR"). As of September 30, 1999 the interest rate was
7.41%. Coast Hotels incurs a commitment fee, payable quarterly in arrears, on
the unused portion of the credit facility. This variable fee is currently at the
maximum rate of 0.5% per annum times the average unused portion of the facility.

     With the proceeds from the senior subordinated notes and borrowings under
the credit facility, we repurchased substantially all of the $175.0 million
principal amount outstanding of 13% first mortgage notes and all $16.8 million
principal amount outstanding of 10-7/8% first mortgage notes and amended the
indenture under which the 13% first mortgage notes were issued to eliminate
substantially all of its restrictive covenants. Approximately $2.0 million in
principal amount of the 13% first mortgage notes remain outstanding and are
governed by the terms of the amended indenture. In connection with the
repurchase of the 13% notes and the 10-7/8% notes, we incurred repurchase
premiums of $31.0 million and $2.1 million, respectively. The repurchase
premiums and the write-offs of unamortized debt issuance costs and original
issue discount resulted in an extraordinary loss of $27.0 million, net of
applicable income tax benefit of $14.5 million.

     The availability under the $200.0 million credit facility will be reduced
in quarterly amounts beginning in the fiscal quarter ending September 30, 2001.
The initial advance of $47.0 million under the credit facility was used in
connection with the repurchase of the 13% first mortgage notes and the 10-7/8%
first mortgage notes. Subsequent advances under the credit facility may be used
for working capital, general corporate purposes, construction of the Suncoast,
and certain improvements to our existing properties.  As of September 30, 1999,
we have borrowed $50.0 million under the $200.0 million credit facility.

Year 2000

     Many currently installed computer systems and other equipment with embedded
computer chips cannot recognize dates after December 31, 1999. Beginning in the
year 2000, companies with such systems, software or equipment may experience
difficulties due to their reliance on them. This situation involving the year
2000 is commonly referred to as the "Y2K" problem.

                                       11
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and
         Results of Operations (Continued)

Year 2000 (Continued)

     We utilize computer systems in virtually all areas of our hotel-casino
operations. Should we or certain of our vendors not be "Y2K compliant" the
operations of our hotel-casinos could be disrupted for an indeterminate period
of time, potentially having a material adverse impact on our results of
operations. Possible consequences of our not being Y2K compliant include, but
are not limited to, problems with the compiling of financial information in our
back-office accounting, purchasing, inventory and payroll systems. Additionally,
disruptions could occur to hotel reservations operations, hotel check-in/check-
out procedures, point-of-sale transactions in food, beverage and retail areas,
race and sports book wagering and the updating and accumulation of slot machine
player marketing information. Additionally, embedded microchips in certain
systems such as elevators, escalators and the heating, ventilation and air
conditioning could lead to interruptions in service. All of these problems could
inconvenience hotel and casino customers, resulting in a loss of business.

     We could also be exposed to Y2K problems should certain of our suppliers
have disruptions to their operations due to Y2K problems. We do not consider
these potential problems to be as significant as those with our own systems
because, in most instances, we could find alternate vendors for our supplies.
However, Y2K problems for certain suppliers, such as utility providers, could
result in disruptions to hotel-casino operations for an indeterminate period of
time. Additionally, should providers of financial services such as ATM's, credit
card processing and credit card cash advance experience Y2K problems, our
operations could be adversely affected.

     We recognize the need to ensure our operations will not be adversely
affected by Y2K and have taken steps to update our systems, where necessary,
including replacing or updating software and equipment. Since 1997, our
Information Systems department has attempted to identify all areas where Y2K
could pose a problem. To assist them in their effort and to further help
identify potential problem areas, in October 1998 we retained the services of an
advisor to review our Y2K program.

     As of September 30, 1999, we have identified and updated or are in the
process of updating those systems and programs that we deem most critical to the
day-to-day operations of our hotel-casinos. Based on representations from our
software vendors, we are currently using Year 2000 compliant software for our
accounting, human resources, payroll, inventory, purchasing, hotel front desk
and reservations, casino player tracking and marketing, race and sports
wagering, bowling and point of sale systems.  We estimate that the cost to
identify and correct potential Y2K problems will total approximately $1.6
million, approximately $1.3 million of which had been spent as of September 30,
1999.  All costs related to software modification, as well as all costs
associated with our Y2K project, are being expensed or capitalized as incurred
and are included in the cost estimate referred to above. We are currently
developing contingency plans for specific areas of our operations. Such plans
include the training of employees in the implementation of manual procedures for
gaming operations, the selection of alternative vendors and the testing of back-
up electrical power generators. We will continue to assess Y2K risk and develop
contingency plans.

Forward Looking Statements

     The statements in this Management's Discussion and Analysis which are not
historical facts are forward looking statements that are made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
The statements are subject to risks and uncertainties, including, but not
limited to, increased competition, both in Nevada and other jurisdictions,
dependence on the Las Vegas area and the Southern California region for a
majority of the Company's customers, uncertainties associated with the Y2K
problem and uncertainties associated with construction projects, including the
related disruption of operations and the availability of financing which could
cause actual results to vary materially from those discussed herein.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

     Not Applicable.

                                       12
<PAGE>

PART II.  OTHER INFORMATION


Item 1.   Legal Proceedings.

          None.

Item 2.   Changes in Securities.

          None.

Item 3.   Defaults Upon Senior Securities.

          None.

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

          None.

Item 5.   Other Information.

          None.

Item 6.   Exhibits and Reports on Form 8-K:

(a)       Exhibits.

          10.48  Amended and Restated Loan Agreement dated as of September 16,
                 1999
          27.    Financial Data Schedule.

(b)       Reports on Form 8-K.

          On July 6, 1999, the Company filed a Form 8-K dated June 22, 1999
under Item 5, Other Events, with respect to the commencement of Coast Hotel's
offer to exchange up to $175.0 million principal amount of newly issued 9-1/2%
Senior Subordinated Notes Due 2009 for a like amount of its outstanding
privately placed 9-1/2% Senior Subordinated Notes Due 2009.

                                       13
<PAGE>

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Quarterly Report on Form 10-Q to be signed on
its behalf by the undersigned thereunto duly authorized.

Date:  November 15, 1999        COAST RESORTS, INC., a Nevada corporation

                                By:  /s/ Gage Parrish
                                     ---------------------------------
                                     Gage Parrish
                                     Vice President and Chief Financial Officer

                                       14