<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 March 31, 2000

                                       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                                                           88-0345706
(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 May 11, 2000:  1,478,978
================================================================================

<PAGE>

Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements.



                       COAST RESORTS, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
                   (dollars in thousands, except share data)

<TABLE>

                                                                              March 31,
                                                                                2000                     December 31,
                                                                             (unaudited)                   1999
                                                                          -----------------      ----------------------
<S>                                                                     <C>                         <C>
                                    ASSETS

CURRENT ASSETS:
 Cash and cash equivalents......................................          $          39,875           $          38,629
 Accounts receivable, net.......................................                      4,736                       4,212
 Other current assets...........................................                     17,123                      16,922
                                                                          -----------------           -----------------
 TOTAL CURRENT ASSETS...........................................                     61,734                      59,763
PROPERTY AND EQUIPMENT, net.....................................                    367,938                     337,704
OTHER ASSETS....................................................                      9,515                       8,652
                                                                          -----------------           -----------------
                                                                          $         439,187           $         406,119
                                                                          =================           =================
                                LIABILITIES AND
                             STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Accounts payable...............................................          $           9,446           $          11,738
 Accrued liabilities............................................                     37,800                      32,781
 Income taxes payable...........................................                      5,256                          --
 Construction accounts payable..................................                     12,669                       8,304
 Current portion of long-term debt..............................                      2,415                       2,473
                                                                          -----------------           -----------------
 TOTAL CURRENT LIABILITIES......................................                     67,586                      55,296
LONG-TERM DEBT, less current portion............................                    243,554                     234,766
DEFERRED INCOME TAXES...........................................                      4,674                       4,222
DEFERRED RENT...................................................                     17,632                      16,732
                                                                          -----------------           -----------------
 TOTAL LIABILITIES..............................................                    333,446                     311,016
                                                                          -----------------           -----------------
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
 Treasury stock.................................................                     (1,538)                     (1,538)
 Additional paid-in capital.....................................                     95,398                      95,398
 Retained earnings..............................................                     11,866                       1,228
                                                                          -----------------           -----------------
 TOTAL STOCKHOLDERS' EQUITY.....................................                    105,741                      95,103
                                                                          -----------------           -----------------
                                                                          $         439,187           $         406,119
                                                                          =================           =================
</TABLE>

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

                                       1
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three Months Ended March 31, 2000 and 1999
                   (dollars in thousands, except share data)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                               Three Months Ended
                                                                                   March 31,
                                                             --------------------------------------------------
                                                                         2000                      1999
                                                             ----------------------      ----------------------
<S>                                                             <C>                           <C>
OPERATING REVENUES:
 Casino.................................................          $          74,024           $          66,057
 Food and beverage......................................                     19,704                      17,775
 Hotel..................................................                      8,314                       7,877
 Other..................................................                      6,921                       7,046
                                                             ----------------------      ----------------------
   GROSS OPERATING REVENUES.............................                    108,963                      98,755
 Less:  promotional allowances..........................                     (9,364)                     (8,689)
                                                             ----------------------      ----------------------
   NET OPERATING REVENUES...............................                     99,599                      90,066
                                                             ----------------------      ----------------------

OPERATING EXPENSES:
 Casino.................................................                     33,895                      32,046
 Food and beverage......................................                     13,346                      11,776
 Hotel..................................................                      3,165                       3,041
 Other..................................................                      5,592                       5,969
 General and administrative.............................                     16,288                      15,425
 Pre-opening expenses...................................                        268                          --
 Deferred rent..........................................                        520                         964
 Depreciation and amortization..........................                      5,774                       5,210
                                                             ----------------------      ----------------------
   TOTAL OPERATING EXPENSES.............................                     78,848                      74,431
                                                             ----------------------      ----------------------

OPERATING INCOME........................................                     20,751                      15,635
                                                             ----------------------      ----------------------

OTHER INCOME (EXPENSES)
 Interest expense, net..................................                     (5,475)                     (6,299)
 Interest capitalized...................................                        970                          --
                                                             ----------------------      ----------------------
TOTAL OTHER INCOME (EXPENSES)...........................                     (4,505)                     (6,299)
                                                             ----------------------      ----------------------

INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEM......................................                     16,246                       9,336
Income tax provision....................................                      5,608                       3,013
                                                             ----------------------      ----------------------
INCOME BEFORE EXTRAORDINARY ITEM........................                     10,638                       6,323
                                                             ----------------------      ----------------------

Extraordinary item - loss on early retirement of debt,
 net of applicable income tax benefit ($14,543).........                         --                     (27,007)
                                                             ----------------------      ----------------------
NET INCOME (LOSS).......................................          $          10,638           $         (20,684)
                                                             ======================      ======================

Basic and diluted income (loss) per share of common
  stock before extraordinary item.......................          $            7.19           $            4.25
                                                             ======================      ======================

Basic and diluted net income (loss) per share of
  common stock..........................................          $            7.19           $          (13.89)
                                                             ======================      ======================

Weighted average shares outstanding.....................                  1,478,978                   1,489,353
                                                             ======================      ======================
</TABLE>

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

                                       2
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the Three Months Ended March 31, 2000 and 1999
                             (dollars in thousands)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                                            Three Months Ended
                                                                                                March 31,
                                                                                -------------------------------------------
                                                                                     2000                      1999
                                                                                ----------------           ----------------
<S>                                                                         <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)....................................................          $         10,638           $        (20,684)
                                                                                ----------------           ----------------
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO
   NET CASH PROVIDED BY OPERATING ACTIVITIES:
   Depreciation and amortization......................................                     5,774                      5,210
   Deferred income taxes..............................................                       355                     (8,065)
   Deferred rent......................................................                       900                        964
   Loss on early retirement of debt...................................                        --                     41,550
   Other non-cash expenses............................................                        --                        124
   Changes in assets and liabilities:
     Net increase in accounts receivable and other assets.............                    (1,899)                    (5,540)
     Net increase (decrease) in accounts payable and accrued
        liabilities...................................................                     7,983                     (2,737)
                                                                                ----------------           ----------------
 TOTAL ADJUSTMENTS....................................................                    13,113                     31,506
                                                                                ----------------           ----------------
 NET CASH PROVIDED BY OPERATING ACTIVITIES............................                    23,751                     10,822
                                                                                ----------------           ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures, net of amounts in accounts payable.............                   (31,235)                    (6,532)
                                                                                ----------------           ----------------
 NET CASH USED IN INVESTING ACTIVITIES................................                   (31,235)                    (6,532)
                                                                                ----------------          -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of long-term debt, net of issuance costs......                        --                    168,521
 Early retirement of debt.............................................                        --                   (223,017)
 Principal payments on long-term debt.................................                      (270)                    (2,192)
 Proceeds from borrowings under bank line of credit...................                     9,000                     47,000
 Repurchase of common stock...........................................                        --                       (500)
 NET CASH PROVIDED BY (USED IN) FINANCING                                       ----------------           ----------------
   ACTIVITIES.........................................................                     8,730                    (10,188)
                                                                                ----------------           ----------------
NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS..........................................................                     1,246                     (5,898)
CASH AND CASH EQUIVALENTS, at beginning of period.....................                    38,629                     41,598
                                                                                ----------------           ----------------
CASH AND CASH EQUIVALENTS, at end of period...........................          $         39,875           $         35,700
                                                                                ================           ================
</TABLE>

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

                                       3
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                    For the Year Ended December 31, 1999 and
                   For the Three Months Ended March 31, 2000
                             (dollars in thousands)

<TABLE>
<CAPTION>

                                         Common Stock
                                 -----------------------------         Additional        Retained         Treasury
                                         Shares         Amount        Paid-In Capital    Earnings           Stock            Total
                                 ----------------     ----------    ------------------  ----------      ---------------   ---------
<S>                              <C>                  <C>          <C>                <C>              <C>              <C>
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......................              --           --                --          (5,785)              --            (5,785)
                                 ------------------     ------      ------------      --------------   -----------      -----------
Balances at December 31, 1999....       1,478,978           15            95,398           1,228           (1,538)           95,103
     Net income..................              --           --                --          10,638               --            10,638
                                 ------------------     ------      ------------      --------------   -----------      -----------
Balances at March 31, 2000
     (unaudited).................       1,478,978      $    15      $     95,398      $   11,866       $   (1,538)      $   105,741
                                 ================      =======      ============      =============    ===========      ===========
</TABLE>

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

                                       4
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                   NOTES TO 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"), which is also a Nevada corporation.  Through Coast Hotels, the
Company owns and operates three Las Vegas hotel-casinos and is developing a
fourth.

 .  The Orleans Hotel and Casino, opened in December 1996, is located
   approximately one and one-half miles west of the Las Vegas Strip on Tropicana
   Avenue.

 .  The Gold Coast Hotel and Casino, opened in December 1986, is located
   approximately one mile west of the Las Vegas Strip on Flamingo Road.

 .  The Barbary Coast Hotel and Casino, opened in March 1979, 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.

Basis of Presentation

   The accompanying consolidated 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.
In addition, certain amounts in the 1999 financial statements have been
reclassified to conform to the 2000 presentation. The unaudited consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and footnotes included in our annual report on Form 10-K
for the year ended December 31, 1999. 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 consolidated financial statements are
not necessarily indicative of expected results for the full year.

                                       5
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - LONG-TERM DEBT

   Long-term debt consists of the following as of March 31, 2000 and December
31, 1999:


<TABLE>
<CAPTION>
                                                                                    March 31,
                                                                                2000 (unaudited)         December 31, 1999
                                                                              --------------------     --------------------
<S>                                                                           <C>                     <C>
                                                                                             (in thousands)

9.5% senior subordinated notes due April 2009.........................          $       175,000          $       175,000

$200.0 million reducing revolving credit facility due April 2004,
   collateralized by substantially all of the assets of Coast Hotels
   and Casinos, Inc...................................................                   64,000                   55,000

13% first mortgage notes due December 2000, with interest
   payable semiannually on June 15 and December 15....................                    1,960                    1,960

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.............................                    2,373                    2,453

7.5% notes, payable in monthly installments of interest only, with all
   principal and any unpaid interest due December 31, 2001. The notes
   are uncollateralized and are payable to the former partners of
   Barbary Coast and Gold Coast.......................................                    1,975                    1,975


Other notes payable...................................................                      661                      851
                                                                                ---------------          ---------------
                                                                                        245,969                  237,239
Less: current portion.................................................                    2,415                    2,473
                                                                                ---------------          ---------------
                                                                                $       243,554          $       234,766
                                                                                ===============          ===============
</TABLE>

                                       6
<PAGE>

                       COAST RESORTS, INC. AND SUBSIDIARY
                   NOTES TO 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 $75.0 million senior secured
revolving credit facility due 2004 to facilitate a refinancing.  Availability
under the credit facility was increased to $200.0 million in September 1999.
Borrowings under the credit facility bear interest, at our option, at a premium
over the one-, two-, three- or six-month London Interbank Offered Rate
("LIBOR").  As of March 31, 2000 the interest rate was 7.86%.  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 its 13% first mortgage notes and all
$16.8 million principal amount outstanding of its 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 remains outstanding
and is governed by the terms of the amended indenture. We are required by the
indenture for the 9.5% senior subordinated notes to redeem the 13% first
mortgage notes that remain outstanding no later than December 15, 2000 at a
redemption price of 106.5% of the principal amount, plus any accrued and unpaid
interest.  Interest on the remaining $2.0 million of the first mortgage notes is
payable semiannually on June 1 and December 1.  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 in
the three months ended March 31, 1999, net of applicable income tax benefit of
$14.5 million.

   The availability under the $200.0 million credit facility will be reduced
quarterly 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 March 31, 2000, Coast Hotels had
$64.0 million outstanding under the credit facility.

   The $200.0 million senior secured revolving credit facility agreement
contains covenants that, among other things, limit our ability to pay dividends,
to make certain capital expenditures, to repay certain existing indebtedness, to
incur additional indebtedness or to sell material assets.  Additionally, the
loan agreement requires that we maintain certain financial ratios with respect
to leverage and fixed charge coverage. We are also subject to certain covenants
associated with the indenture governing the $175.0 million principal amount of
senior subordinated notes, including, in part, limitations on certain restricted
payments, the incurrence of additional indebtedness and asset sales.  We believe
that, at March 31, 2000, we were in compliance with all covenants and required
ratios.

                                       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 our results of operations:


<TABLE>
<CAPTION>
                                                                      Three Months Ended
                                                                          March 31,
                                                       ---------------------------------------------
                                                                  2000                      1999
                                                       --------------------     --------------------
<S>                                                    <C>                               <C>
                                                                        (in thousands)
                                                                         (unaudited)
Hotel-casino operations:
 Net operating revenues...........................          $        99,599          $        90,066
 Operating expenses...............................                   77,060                   71,774
                                                       --------------------     --------------------
Operating income from hotel-casino operations.....                   22,539                   18,292
Corporate expenses (1)............................                    1,788                    2,657
                                                       --------------------     --------------------
Total operating income............................          $        20,751          $        15,635
                                                       ====================     ====================
EBITDA, hotel-casino operations (2)...............          $        28,400          $        23,739
                                                       ====================     ====================
EBITDA, total (including corporate) (2)...........          $        27,313          $        21,809
                                                       ====================     ====================
</TABLE>
(1)  Corporate expenses include corporate general and administrative expenses,
     depreciation and amortization 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 of
     the Suncoast, are being capitalized during construction.
(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.

                                       8
<PAGE>

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

Results of Operation (Continued)

Three Months Ended March 31, 2000 Compared to Three Months Ended March 31, 1999

   Net revenues in the quarter ended March 31, 2000 were $99.6 million compared
to $90.1 million in the same quarter in 1999, an increase of 10.6%.  Revenues
were higher at all three of our hotel-casino properties.  First quarter
operating income was $20.8 million compared to 1999 first quarter operating
income of $15.6 million, an increase of 32.8%.  Operating margins (operating
income as a percentage of revenues) improved at all three of our hotel-casino
properties.  Net income improved to $10.6 million in the first quarter of 2000,
compared to a net loss of $20.7 million in the first quarter of 1999 that
resulted from a one-time charge of $27.0 million (net of income tax benefit)
related to the early retirement of debt in a refinancing.  1999 first quarter
net income before the extraordinary item and related tax benefit was $6.3
million.

   Casino.  Casino revenues in the quarter ended March 31, 2000 were $74.0
million compared to $66.1 million in 1999, an increase of 12.1%.  The increase
was primarily due to the continued improvement in slot revenues at the Orleans,
up 20.3% over the first quarter in 1999 as a result of increased customer
volume.  Casino revenues also improved at the Gold Coast, up 7.7% due primarily
to improved table games wagering volume and win percentage.  Casino revenues at
the Barbary Coast improved 8.5%, due primarily to improved slot machine
revenues.

   Casino expenses in the quarter ended March 31, 2000 increased by 5.8% over
the same quarter in 1999, related to the increased casino revenues.  The casino
operating margin improved in the first quarter of 2000 to 54.2% compared to
51.5% in the first quarter of 1999.

   Food and Beverage.  Food and beverage revenues were $19.7 million in the
first quarter of 2000 compared to $17.8 million in 1999, an increase of 10.9%.
The increase was primarily due to increased customer volume and higher prices at
the Orleans' new larger buffet that opened in May 1999.

   Food and beverage expenses were $13.3 million in the first quarter of 2000
compared to $11.8 million in the first quarter of 1999, an increase of 13.3%
primarily due to increased staffing and higher food costs in the Orleans' new
buffet.

   Hotel. Hotel room revenues were $8.3 million in the three months ended March
31, 2000, an increase of 5.5% over 1999 revenues of $7.9 million, despite a
decrease in room occupancy percentages that we believe is attributable to
increased competition from three new hotel casinos opened in 1999 on the Las
Vegas Strip. An increase in average daily room rates from $53 in 1999 to $60 in
the first quarter of 2000 contributed to the increased revenues. Hotel operating
margins improved slightly to 61.9% from 61.4% in the first quarter of 1999.

   Other.  Other revenues were down 1.8% in the first quarter of 2000, primarily
due to lower showroom revenues at the Orleans as a result of our decision to
book fewer entertainment nights.  Other expenses declined 6.3%, primarily due to
a decline in entertainers' fees at the Orleans.

   General and Administrative.  General and administrative expenses increased
5.6% to $16.3 million in the first quarter of 2000 compared to $15.4 million in
1999.  The increase was due, in part, to July 1999 wage increases at our three
hotel-casinos.  Additionally, an expansion completed in May 1999 at the Orleans
resulted in higher utility costs and increased staffing in several ancillary
departments.  General and administrative expenses include cash rent expense of
$675,000 and $1.1 million for 2000 and 1999, respectively.  Cash rent was lower
in the first quarter of 2000 as a result of the capitalizing of rent on the
Suncoast land since July 1999, when construction of that project commenced.

                                       9
<PAGE>

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

Results of Operations (Continued)

   Deferred Rent.  Deferred rent decreased from $964,000 in 1999 to $520,000 in
2000 as a result of the capitalizing of rent on the Suncoast land during
construction.

   Depreciation and Amortization.  Depreciation and amortization expense was
$5.8 million in the first quarter of 2000 compared to $5.2 million in 1999.  The
increase was due primarily to the addition of new equipment at each of our
hotel-casino properties.

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 $23.8 million in the three months ended March 31, 2000 compared to $10.8
million in 1999.  The increase was due primarily to increased operating income
and increases in accrued liabilities.

   Cash used in investing activities in the three months ended March 31, 2000
was $31.2 million and was primarily for capital expenditures, including $28.6
million for the ongoing construction of the Suncoast.  Our anticipated capital
expenditures for 2000 are $162.8 million, including $149.9 million for
construction of the Suncoast, $9.7 million for maintenance capital expenditures
at our three existing hotel-casinos and $3.2 million for various projects,
including new restaurants at the Orleans and a bowling center remodeling at the
Gold Coast.

   Cash provided by financing activities was $8.7 million in the first quarter
of 2000, primarily from borrowings under Coast Hotels' $200.0 million line of
credit.  In the first quarter of 1999, cash used in financing activities was
$10.2 million, due primarily to a refinancing of our debt.  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 $200.0 million in September 1999.  Borrowings under the credit
facility bear interest, at our option, at a premium over the one-, two-, three-
or six-month London Interbank Offered Rate ("LIBOR").  As of March 31, 2000, the
interest rate was 7.86%.  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 its 13% first mortgage notes and all
$16.8 million principal amount of its 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 remains outstanding and is
governed by the terms of the amended indenture. Coast Hotels is required by the
terms of the indenture for the 9.5% senior subordinated notes to redeem the 13%
first mortgage notes that remain outstanding no later than December 15, 2000 at
a redemption price of 106.5% of the principal amount, plus any accrued and
unpaid interest. 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.

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<PAGE>

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

Liquidity and Capital Resources (Continued)

   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 March 31, 2000,
Coast Hotels had $64.0 million outstanding under the $200.0 million credit
facility.

   We believe that existing cash balances, operating cash flow and available
borrowings under the $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 construction,
development and opening costs of the Suncoast.

Forward Looking Statements

   Certain statements in this section and elsewhere in this Quarterly Report on
Form 10Q (as well as information included in oral statements or other statements
made or to be made by us) constitute "forward-looking statements".  Such
forward-looking statements include the discussions of our business strategies
and expectations concerning future operations, margins, profitability, liquidity
and capital resources.  In addition, in certain portions of this 10-Q, the
words: "anticipates", "believes", "estimates", "seeks", "expects", "plans",
"intends" and similar expressions, as they relate to Coast Resorts or our
management, are intended to identify forward-looking statements.  Although we
believe that such forward-looking statements are reasonable, we can give no
assurance that any forward-looking statements will prove to be correct.  Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, performance or achievements
of Coast Resorts to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.  Such
factors include, among others, the risks associated with entering into a new
venture and new construction, competition and other planned construction in Las
Vegas, government regulation related to the casino industry (including the
regulation of gaming in certain jurisdictions, such as Native American
reservations in the State of California), leverage and debt service (including
sensitivity to fluctuations in interest rates), occupancy rates and average
daily room rates in Las Vegas, the completion of infrastructure projects in Las
Vegas and general economic and business conditions which may impact levels of
disposable income of consumers and pricing of hotel rooms.

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<PAGE>

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

   Market risk is the risk of loss arising from adverse changes in market rates
and prices, such as interest rates, foreign currency exchange rates and
commodity prices.  Our primary exposure to market risk is interest rate risk
associated with our long-term debt.  To date, we have not invested in
derivative- or foreign currency-based financial instruments.  We attempt to
limit our exposure to interest rate risk by managing the mix of our long-term
fixed-rate borrowings and short-term borrowings under our revolving bank credit
facility.

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<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.

         27.  Financial Data Schedule.

(b)      Reports on Form 8-K.

         None.

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<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:  May 15, 2000                 COAST RESORTS, INC., a Nevada corporation


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

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