Document:

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                              SECURITY AGREEMENT
                              ------------------
                                (Coast Resorts)

          This SECURITY AGREEMENT ("Agreement"), dated as of March 18, 1999, is
made by Coast Resorts Inc., a Nevada corporation ("Grantor"), in favor of Bank
of America National Trust and Savings Association, as Administrative Agent under
the Loan Agreement hereafter referred to, and in favor of each of the Lenders
therein named (collectively referred to herein as "Secured Party"), with
reference to the following facts:

                                   RECITALS
                                   --------

          A.   Pursuant to the Loan Agreement of even date herewith by and among
Coast Hotels and Casinos, Inc. ("Borrower"), the lenders from time to time party
thereto (collectively, the "Lenders" and individually, a "Lender"), and the
Administrative Agent (as such agreement may from time to time be amended,
extended, renewed, supplemented or otherwise modified, the "Loan Agreement"),
the Lenders have agreed to extend certain credit facilities to Borrower.

          B.   Grantor has issued a Guaranty of even date herewith with respect
to the obligations of Borrower under the Loan Agreement (as at any time amended,
renewed, replaced, extended or supplanted, the "Guaranty").

          C.   The Loan Agreement provides, as a condition of the availability
of such credit facilities to Borrower, that Grantor shall enter into this
Agreement to secure its obligations under the Guaranty and shall grant security
interests to Secured Party as herein provided.

                                   AGREEMENT
                                   ---------

          NOW, THEREFORE, in order to induce the Lenders to extend the
aforementioned credit facilities, and for other good and valuable consideration,
the receipt and adequacy of which hereby is acknowledged, Grantor hereby
represents, warrants, covenants, agrees, assigns and grants as follows:

          1.   Definitions.  This Agreement is the Coast Resorts Security
               -----------
Agreement referred to in the Loan Agreement.  This Agreement is one of the "Loan
Documents" referred to in the Loan Agreement.  Terms defined in the Loan
Agreement and not otherwise defined in this Agreement shall have the meanings
defined for those terms in the Loan Agreement.  Terms defined in the California
Uniform Commercial Code and not otherwise defined in this Agreement or in the
Loan Agreement shall have the meanings defined for those terms in the California
Uniform Commercial Code.  As used in this Agreement, the following terms shall
have the meanings respectively set forth after each:

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          "Agreement" means this Security Agreement, and any extensions,
           ---------
     modifications, renewals, restatements, supplements or amendments hereof.

          "Collateral" means and includes all present and future right, title
           ----------
     and interest of Grantor in or to any Property or assets whatsoever, and all
     rights and powers of Grantor to transfer any interest in or to any Property
     or assets whatsoever, including, without limitation, any and all of the
                           ---------
     following Property:

               (a)    All present and future accounts, accounts receivable,
     agreements, contracts, leases, contract rights, rights to payment,
     instruments, documents, chattel paper, security agreements, guaranties,
     letters of credit, undertakings, surety bonds, insurance policies (whether
     or not required by the terms of the Loan Documents), notes and drafts, and
     all forms of obligations owing to Grantor or in which Grantor may have any
     interest, however created or arising and whether or not earned by
     performance;

               (b)    All present and future general intangibles, all tax
     refunds of every kind and nature to which Grantor now or hereafter may
     become entitled, however arising, all other refunds, and all deposits,
     reserves, loans, royalties, cost savings, deferred payments, goodwill,
     choses in action, liquidated damages, rights to indemnification, trade
     secrets, computer programs, software, customer lists, trademarks, trade
     names, patents, licenses (except for gaming licenses and liquor licenses,
     which are not transferable), copyrights, technology, processes, proprietary
     information and insurance proceeds of which Grantor is a beneficiary;

               (c)    Whether characterized as accounts, general intangibles or
     otherwise, all rents (including, without limitation, prepaid rents, fixed,
                           ---------
     additional and contingent rents), issues, profits, receipts, earnings,
     revenue, income, security deposits, occupancy charges, hotel room charges,
     cabana charges, casino revenues, show ticket revenues, food and beverage
     revenues, room service revenues, merchandise sales revenues, parking,
     maintenance, common area, tax, insurance, utility and service charges and
     contributions, green fees, cart rental fees, instruction fees, membership
     charges, restaurant, snack bar and pro shop revenues;

               (d)    All present and future deposit accounts of Grantor,

     including, without limitation, any demand, time, savings, passbook or like
     ---------
     account maintained by Grantor with any bank, savings and loan association,
     credit union or like organization, and all money, Cash and Cash Equivalents
     of Grantor, whether or not deposited in any such deposit account;

               (e)    All present and future books and records, including,
                                                                ---------
     without limitation, books of account and ledgers of every kind and nature,
     all electronically

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     recorded data relating to Grantor or the business thereof, all receptacles
     and containers for such records, and all files and correspondence;

               (f)    All present and future goods, including, without
                                                    ---------
     limitation, all consumer goods, farm products, inventory, equipment, gaming
     devices and associated equipment (including, without limitation, gaming
     devices and associated equipment as defined in Nevada Revised Statutes
     Chapter 463), machinery, tools, molds, dies, furniture, furnishings,
     fixtures, trade fixtures, motor vehicles and all other goods used in
     connection with or in the conduct of Grantor's business;

               (g)    All present and future inventory and merchandise,
     including, without limitation, all present and future goods held for sale
     ---------
     or lease or to be furnished under a contract of service, all raw materials,
     work in process and finished goods, all packing materials, supplies and
     containers relating to or used in connection with any of the foregoing, and
     all bills of lading, warehouse receipts or documents of title relating to
     any of the foregoing;

               (h)    All present and future stocks, bonds, debentures,
     securities, subscription rights, options, warrants, puts, calls,
     certificates, partnership interests, joint venture interests, investment
     property, Investments and/or brokerage accounts and all rights,
     preferences, privileges, dividends, distributions, redemption payments, or
     liquidation payments with respect thereto;

               (i)    All present and future accessions, appurtenances,
     components, repairs, repair parts, spare parts, replacements,
     substitutions, additions, issue and/or improvements to or of or with
     respect to any of the foregoing;

               (j)    All other tangible and intangible Property of Grantor;

               (k)    All rights, remedies, powers and/or privileges of Grantor
     with respect to any of the foregoing; and

               (l)    Any and all proceeds and products of any of the foregoing,
     including, without limitation, all money, accounts, general intangibles,
     ---------
     deposit accounts, documents, instruments, chattel paper, goods, insurance
     proceeds, and any other tangible or intangible property received upon the
     sale or disposition of any of the foregoing;

provided that the term "Collateral", as used in this Agreement, shall not
--------                ----------                                    ---
include (i) Real Property or any interest therein, (ii) any capital stock or
other equity interests in any gaming licensees, (iii) any aircraft owned by the
Grantor on the Closing Date, (iv) any agreement with a third party that,
pursuant to its terms, prohibits the grant of a lien on such agreement;

                                      -3-
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provided that the Grantor shall use its best efforts to obtain such third
party's consent to assignment of all material agreements; or (v) any Property
the purchase of which was financed by a purchase money security interest,
including any Capital Lease Obligation, permitted under Section 6.9 or 6.10 of
the Loan Agreement.

          "Secured Obligations" means any and all present and future Obligations
           -------------------
of any type or nature of Grantor to Secured Party arising under the Guaranty,
whether due or to become due, matured or unmatured, liquidated or unliquidated,
or contingent or noncontingent, including Obligations of performance as well as
                                ---------
Obligations of payment, and including interest that accrues after the
                            ---------
commencement of any bankruptcy or insolvency proceeding by or against Grantor or
any of its Subsidiaries.

          2.   Further Assurances.  At any time and from time to time at the
               ------------------
request of Secured Party, Grantor shall execute and deliver to Secured Party all
such financing statements and other instruments and documents in form and
substance satisfactory to Secured Party as shall be necessary or desirable to
fully perfect, when filed and/or recorded, Secured Party's security interests
granted pursuant to Section 3 of this Agreement, provided that nothing contained
herein shall require the Lien of this Agreement to be prior to that of the 13%
Indenture and the collateral documents securing the same to the extent that such
Indebtedness is permitted by the terms of the Loan Agreement. It is hereby
acknowledged and agreed that, notwithstanding anything contained herein or in
any other Collateral Document, Grantor shall not be required under any
circumstance to take any further action to perfect any interest granted to
Secured Party in any cage cash, deposit accounts, markers, instruments or other
cash items which are used in connection with the casino operations of Grantor.
At any time and from time to time, Secured Party shall be entitled to file
and/or record any or all such financing statements, instruments and documents
held by it, and any or all such further financing statements, documents and
instruments, and to take all such other actions, as Secured Party may deem
appropriate to perfect and to maintain perfected the security interests granted
in Section 3 of this Agreement.  Before and after the occurrence of any Event of
Default, at Secured Party's request, Grantor shall execute all such further
financing statements, instruments and documents, and shall do all such further
acts and things, as may be deemed necessary or desirable by Secured Party to
create and perfect, and to continue and preserve, an indefeasible security
interest in the Collateral in favor of Secured Party, or the priority thereof.
With respect to any Collateral consisting of instruments, documents,
certificates of title or the like, as to which Secured Party's security interest
need be perfected by, or the priority thereof need be assured by, possession of
such Collateral, Grantor will upon demand of Secured Party deliver possession of
same in pledge to Secured Party.  With respect to any Collateral consisting of
securities, instruments, partnership or joint venture interests or the like,
Grantor hereby consents and agrees that the issuers of, or obligors on, any such
Collateral, or any registrar or transfer agent or trustee for any such
Collateral, shall be entitled to accept the provisions of this Agreement as
conclusive evidence of the right of Secured Party to effect any transfer or
exercise any right hereunder or with respect to any such Collateral,

                                      -4-
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notwithstanding any other notice or direction to the contrary heretofore or
hereafter given by Grantor or any other Person to such issuers or such obligors
or to any such registrar or transfer agent or trustee.

          3.   Security Agreement.  For valuable consideration, Grantor hereby
               ------------------
assigns and pledges to Secured Party, and grants to Secured Party a security
interest in, all presently existing and hereafter acquired Collateral, as
security for the timely payment and performance of the Secured Obligations, and
each of them.  This Agreement is a continuing and irrevocable agreement and all
the rights, powers, privileges and remedies hereunder shall apply to any and all
Secured Obligations, including those arising under successive transactions which
shall either continue the Secured Obligations, increase or decrease them, or
from time to time create new Secured Obligations after all or any prior Secured
Obligations have been satisfied, and notwithstanding the bankruptcy of Grantor
or any other Person or any other event or proceeding affecting any Person.

          4.   Grantor's Representations, Warranties and Agreements.  Except as
               ----------------------------------------- ----------   ------
otherwise disclosed to Secured Party in writing concurrently herewith, Grantor
represents, warrants and agrees that: (a) Grantor will pay, prior to
delinquency, all taxes, charges, Liens and assessments against the portion of
the Collateral owned by it, except such as are timely contested in good faith,
                            ------
and upon its failure to pay or so contest such taxes, charges, Liens and
assessments, Secured Party at its option may pay any of them, and Secured Party
shall be the sole judge of the legality or validity thereof and the amount
necessary to discharge the same; (b) the Collateral will not be used for any
unlawful purpose or in material violation of any Law, regulation or ordinance,
nor used in any way that will void or impair any insurance required to be
carried in connection therewith; (c) Grantor will, to the extent consistent with
good business practice, keep the portion of the Collateral owned by it in
reasonably good repair, working order and condition, and from time to time make
all needful and proper repairs, renewals, replacements, additions and
improvements thereto and, as appropriate and applicable, will otherwise deal
with such portion of the Collateral in all such ways as are considered good
practice by owners of like Property; (d) Grantor will take all reasonable steps
to preserve and protect the Collateral; (e) Grantor will maintain, with
responsible insurance companies, insurance covering the Collateral against such
insurable losses as is required by the Loan Agreement and as is consistent with
sound business practice, and will cause Secured Party to be designated as an
additional insured and loss payee with respect to all insurance (whether or not
required by the Loan Agreement), will obtain the written agreement of the
insurers that such insurance shall not be canceled, terminated or materially
modified to the detriment of Secured Party without at least 30 days prior
written notice to Secured Party, and will furnish copies of such insurance
policies or certificates to Secured Party promptly upon request therefor; (f)
Grantor will promptly notify Secured Party in writing in the event of any
substantial or material damage to the Collateral from any source whatsoever,
and, except for the disposition of collections and other proceeds of the
     ------
Collateral permitted by Section 6 hereof, Grantor will not remove or permit to
be removed any part of the Collateral from the

                                      -5-
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State of Nevada without the prior written consent of Secured Party, except for
                                                                    ------
such items of the Collateral as are removed in the ordinary course of business
or in connection with any transaction or disposition otherwise permitted by the
Loan Documents; and (g) in the event Grantor changes its name or its address as
either are set forth herein or in the Loan Agreement, Grantor will notify
Secured Party of such name and/or address change promptly, but in any event,
within thirty days.

          5.   Secured Party's Rights Re Collateral.  If an Event of Default has
               ------------------------------------
occurred and remains continuing, then at any time without notice or demand and
at the sole expense of Grantor (or if no Event of Default is continuing, at
Secured Party's sole expense and upon reasonable advance notice and at any time
during regular business hours and as often as reasonably requested (but not so
as to materially interfere with the business of Grantor or any of its
Subsidiaries)), Secured Party may, to the extent it may be necessary or
desirable to protect the security hereunder, but Secured Party shall not be
obligated to: (a) enter upon any premises on which Collateral is situated and
examine the same or (b) perform any obligation of Grantor under this Agreement
or any obligation of any other Person under the Loan Documents.  At any time and
from time to time, at the expense of Grantor, Secured Party may, to the extent
it may be necessary or desirable to protect the security hereunder, but Secured
Party shall not be obligated to:  (i) notify obligors on the Collateral that the
Collateral has been assigned to Secured Party; (ii) at any time and from time to
time request from obligors on the Collateral, in the name of Grantor or in the
name of Secured Party, information concerning the Collateral and the amounts
owing thereon; and (iii) while an Event of Default is continuing (and subject to
any inconsistent rights of the Trustee under the 13% Indenture) cause the
Collateral to be registered in the name of Secured Party, as legal owner.
Grantor shall at any time at Secured Party's request mark the Collateral and/or
Grantor's ledger cards, books of account and other records relating to the
Collateral with appropriate notations satisfactory to Secured Party disclosing
that they are subject to Secured Party's security interests.   Secured Party
shall be under no duty or obligation whatsoever to take any action to protect or
preserve the Collateral or any rights of Grantor therein, or to make collections
or enforce payment thereon, or to participate in any foreclosure or other
proceeding in connection therewith.

          6.   Collections on the Collateral.  Except as otherwise provided in
               -----------------------------   ------
any Loan Document, Grantor shall have the right to use and to continue to make
collections on and receive dividends and other proceeds of all of the Collateral
in the ordinary course of business so long as no Event of Default shall have
occurred and be continuing.  Upon the occurrence and during the continuance of
an Event of Default, at the option of Secured Party, Grantor's right to make
collections on and receive dividends and other proceeds of the Collateral and to
use or dispose of such collections and proceeds shall terminate, and (subject to
any prior rights of the Trustee under the 13% Indenture) any and all dividends,
proceeds and collections, including all partial or total prepayments, then held
or thereafter received on or on account of the Collateral will be held or
received by Grantor in trust for Secured Party

                                      -6-
<PAGE>

and immediately delivered in kind to Secured Party. Any remittance received by
Grantor from any Person shall be presumed to relate to the Collateral and to be
subject to Secured Party's security interests. Upon the occurrence and during
the continuance of an Event of Default, Secured Party shall have the right at
all times (subject to any inconsistent rights of the Trustee under the 13%
Indenture) to receive, receipt for, endorse, assign, deposit and deliver, in the
name of Secured Party or in the name of Grantor, any and all checks, notes,
drafts and other instruments for the payment of money constituting proceeds of
or otherwise relating to the Collateral; and Grantor hereby authorizes Secured
Party to affix, by facsimile signature or otherwise, the general or special
endorsement of it, in such manner as Secured Party shall deem advisable, to any
such instrument in the event the same has been delivered to or obtained by
Secured Party without appropriate endorsement, and Secured Party and any
collecting bank are hereby authorized to consider such endorsement to be a
sufficient, valid and effective endorsement by Grantor, to the same extent as
though it were manually executed by the duly authorized officer of Grantor,
regardless of by whom or under what circumstances or by what authority such
facsimile signature or other endorsement actually is affixed, without duty of
inquiry or responsibility as to such matters, and Grantor hereby expressly
waives demand, presentment, protest and notice of protest or dishonor and all
other notices of every kind and nature with respect to any such instrument.

          7.   Possession of Collateral by Secured Party.   Any or all of the
               -----------------------------------------
Collateral delivered to Secured Party consisting of Cash shall be held in an
interest-bearing account and, when an Event of Default exists, Secured Party
may, in its discretion, apply any such interest to payment of the Secured
Obligations.  Nothing herein shall obligate Secured Party to invest any
Collateral or obtain any particular return thereon.  Upon the occurrence and
during the continuance of an Event of Default, whenever any of the Collateral is
in Secured Party's possession, custody or control, Secured Party may use,
operate and consume the Collateral, whether for the purpose of preserving and/or
protecting the Collateral or for the purpose of performing any of Grantor's
obligations with respect thereto.  Secured Party may at any time deliver or
redeliver the Collateral or any part thereof to Grantor, and the receipt of any
of the same by Grantor shall be complete and full acquittance for the Collateral
so delivered, and Secured Party thereafter shall be discharged from any
liability or responsibility therefor.  So long as Secured Party exercises
reasonable care with respect to any Collateral in its possession, custody or
control, Secured Party shall have no liability for any loss of or damage to such
Collateral, and in no event shall Secured Party have liability for any
diminution in value of Collateral occasioned by economic or market conditions or
events.  Secured Party shall be deemed to have exercised reasonable care within
the meaning of the preceding sentence if the Collateral in the possession,
custody or control of Secured Party is accorded treatment substantially equal to
that which Secured Party accords its own property, it being understood that
Secured Party shall not have any responsibility for (a) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relating to any Collateral, whether or not Secured Party has or is
deemed to have knowledge

                                      -7-
<PAGE>

of such matters, or (b) taking any necessary steps to preserve rights against
any Person with respect to any Collateral.

          8.   Events of Default.  There shall be an Event of Default hereunder
               -----------------
upon the occurrence and during the continuance of an Event of Default under the
Loan Agreement.

          9.   Rights Upon Event of Default.  Upon the occurrence and during the
               ----------------------------
continuance of an Event of Default, Secured Party shall have, in any
jurisdiction where enforcement hereof is sought, in addition to all other rights
and remedies that Secured Party may have under applicable Law or in equity or
under this Agreement (including, without limitation, all rights set forth in
                      ---------
Section 6 hereof) or under any other Loan Document, all rights and remedies of a
secured party under the Uniform Commercial Code as enacted in any jurisdiction,
and, in addition, the following rights and remedies, all of which may be
exercised with or without notice to Grantor and without affecting the
Obligations of Grantor hereunder or under any other Loan Document, or the
enforceability of the Liens and security interests created hereby: (a) to
foreclose the Liens and security interests created hereunder or under any other
agreement relating to any Collateral by any available judicial procedure or
without judicial process; (b) to enter any premises where any Collateral may be
located for the purpose of securing, protecting, inventorying, appraising,
inspecting, repairing, preserving, storing, preparing, processing, taking
possession of or removing the same; (c) to sell, assign, lease or otherwise
dispose of any Collateral or any part thereof, either at public or private sale
or at any broker's board, in lot or in bulk, for cash, on credit or otherwise,
with or without representations or warranties and upon such terms as shall be
acceptable to Secured Party; (d) to notify obligors on the Collateral that the
Collateral has been assigned to Secured Party and that all payments thereon are
to be made directly and exclusively to Secured Party; (e) to collect by legal
proceedings or otherwise all dividends, distributions, interest, principal or
other sums now or hereafter payable upon or on account of the Collateral; (f) to
cause the Collateral to be registered in the name of Secured Party, as legal
owner; (g) to enter into any extension, reorganization, deposit, merger or
consolidation agreement, or any other agreement relating to or affecting the
Collateral, and in connection therewith Secured Party may deposit or surrender
control of the Collateral and/or accept other Property in exchange for the
Collateral; (h) to settle, compromise or release, on terms acceptable to Secured
Party, in whole or in part, any amounts owing on the Collateral and/or any
disputes with respect thereto; (i) to extend the time of payment, make
allowances and adjustments and issue credits in connection with the Collateral
in the name of Secured Party or in the name of Grantor; (j) to enforce payment
and prosecute any action or proceeding with respect to any or all of the
Collateral and take or bring, in the name of Secured Party or in the name of
Grantor, any and all steps, actions, suits or proceedings deemed by Secured
Party necessary or desirable to effect collection of or to realize upon the
Collateral, including any judicial or nonjudicial foreclosure thereof or
            ---------
thereon, and Grantor specifically consents to any nonjudicial foreclosure of any
or all of the Collateral or any other action taken by Secured Party which may
release any obligor

                                      -8-
<PAGE>

from personal liability on any of the Collateral, and Grantor waives any right
not expressly provided for in this Agreement to receive notice of any public or
private judicial or nonjudicial sale or foreclosure of any security or any of
the Collateral; and any money or other property received by Secured Party in
exchange for or on account of the Collateral, whether representing collections
or proceeds of Collateral, and whether resulting from voluntary payments or
foreclosure proceedings or other legal action taken by Secured Party or Grantor
may be applied by Secured Party without notice to Grantor to the Secured
Obligations in such order and manner as Secured Party in its sole discretion
shall determine; (k) to insure, process and preserve the Collateral; (l) to
exercise all rights, remedies, powers or privileges provided under any of the
Loan Documents; (m) to remove, from any premises where the same may be located,
the Collateral and any and all documents, instruments, files and records, and
any receptacles and cabinets containing the same, relating to the Collateral,
and Secured Party may, at the cost and expense of Grantor, use such of its
supplies, equipment, facilities and space at its places of business as may be
necessary or appropriate to properly administer, process, store, control,
prepare for sale or disposition and/or sell or dispose of the portion of the
Collateral owned by Grantor or to properly administer and control the handling
of collections and realizations thereon, and Secured Party shall be deemed to
have a rent-free tenancy of premises of Grantor for such purposes and for such
periods of time as reasonably required by Secured Party; (n) to receive, open
and dispose of all mail addressed to Grantor and notify postal authorities to
change the address for delivery thereof to such address as Secured Party may
designate; provided that Secured Party agrees that it will promptly deliver over
           --------
to Grantor such opened mail as does not relate to the Collateral; and (o) to
exercise all other rights, powers, privileges and remedies of an owner of the
Collateral; all at Secured Party's sole option and as Secured Party in its sole
discretion may deem advisable. Grantor will, at Secured Party's request,
assemble the Collateral and make it available to Secured Party at places which
Secured Party may designate, whether at the premises of Grantor or elsewhere,
and will make available to Secured Party, free of cost, all premises, equipment
and facilities of Grantor for the purpose of Secured Party's taking possession
of the Collateral or storing same or removing or putting the Collateral in
salable form or selling or disposing of same.

          Upon the occurrence and during the continuance of an Event of Default,
Secured Party also shall have the right, without notice or demand, either in
person, by agent or by a receiver to be appointed by a court (and Grantor hereby
expressly consents upon the occurrence and during the continuance of an Event of
Default to the appointment of such a receiver), and without regard to the
adequacy of any security for the Secured Obligations, to take possession of the
Collateral or any part thereof and to collect and receive the rents, issues,
profits, income and proceeds thereof. Taking possession of the Collateral shall
not cure or waive any Event of Default or notice thereof or invalidate any act
done pursuant to such notice. The rights, remedies and powers of any receiver
appointed by a court shall be as ordered by said court.

                                      -9-
<PAGE>

          Any public or private sale or other disposition of the Collateral may
be held at any office of Secured Party, or at Grantor's places of business, or
at any other place permitted by applicable Law, and without the necessity of the
Collateral's being within the view of prospective purchasers.  The Secured Party
may also request, in connection therewith, the Nevada Gaming Commission to
petition a District Court of the State of Nevada for the appointment of a
supervisor to conduct the normal gaming activities on the premises following the
appointment of a receiver.  Secured Party may direct the order and manner of
sale of the Collateral, or portions thereof, as it in its sole and absolute
discretion may determine, and Grantor expressly waives any right to direct the
order and manner of sale of any Collateral. Secured Party or any Person on
Secured Party's behalf may bid and purchase at any such sale or other
disposition.  The net cash proceeds resulting from the collection, liquidation,
sale, lease or other disposition of the Collateral shall be applied, first, to
the expenses (including reasonable attorneys' fees and disbursements) of
retaking, holding, storing, processing and preparing for sale or lease, selling,
leasing, collecting, liquidating and the like, and then to the satisfaction of
the Secured Obligations in such order as shall be determined by Secured Party in
its sole and absolute discretion.  Grantor and any other Person then obligated
therefor shall pay to Secured Party on demand any deficiency with regard thereto
which may remain after such sale, disposition, collection or liquidation of the
Collateral.  Any surplus held by the Security Party and remaining after payment
in full of all the Secured Obligations shall immediately be reassigned and
redelivered to Grantor, or to the person or persons otherwise legally entitled
thereto.

          Unless the Collateral is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, Secured Party
will send or otherwise make available to Grantor reasonable notice of the time
and place of any public sale thereof or of the time on or after which any
private sale thereof is to be made.  The requirement of sending reasonable
notice conclusively shall be met if such notice is mailed, first class mail,
postage prepaid, to Grantor at its address set forth in the Loan Agreement, or
delivered or otherwise sent to Grantor, at least ten (10) days before the date
of the sale.  Grantor expressly waives any right to receive notice of any public
or private sale of any Collateral or other security for the Secured Obligations

except as expressly provided for in this paragraph.
------

          With respect to any Collateral consisting of securities, partnership
interests, joint venture interests, Investments or the like, and whether or not
any of such Collateral has been effectively registered under the Securities Act
of 1933, as amended, or other applicable Laws, Secured Party may, in its sole
and absolute discretion, sell all or any part of such Collateral at private sale
in such manner and under such circumstances as provided in the Uniform
Commercial Code of California.  Without limiting the foregoing, Secured Party
may (i) approach and negotiate with a limited number of potential purchasers,
and (ii) restrict the prospective bidders or purchasers to persons who will
represent and agree that they are purchasing such Collateral for their own
account for investment and not with a view to the distribution or resale
thereof.  In the event that any such Collateral is sold at private sale,

                                      -10-
<PAGE>

Grantor agrees that if such Collateral is sold for a price which Secured Party
in good faith believes to be reasonable under the circumstances then existing,
then (a) the sale shall be deemed to be commercially reasonable in all respects,
(b) Grantor shall not be entitled to a credit against the Secured Obligations in
an amount in excess of the purchase price, and (c) Secured Party shall not incur
any liability or responsibility to Grantor in connection therewith,
notwithstanding the possibility that a substantially higher price might have
been realized at a public sale. Grantor recognizes that a ready market may not
exist for such Collateral if it is not regularly traded on a recognized
securities exchange, and that a sale by Secured Party of any such Collateral for
an amount substantially less than a pro rata share of the fair market value of
the issuer's assets minus liabilities may be commercially reasonable in view of
the difficulties that may be encountered in attempting to sell a large amount of
such Collateral or Collateral that is privately traded.

          Upon consummation of any sale of Collateral hereunder, Secured Party
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold.  Each such purchaser at any such sale
shall hold the Collateral so sold absolutely free from any claim or right upon
the part of Grantor or any other Person, and Grantor hereby waives (to the
extent permitted by applicable Laws) all rights of redemption, stay and
appraisal which it now has or may at any time in the future have under any rule
of Law or statute now existing or hereafter enacted.  If the sale of all or any
part of the Collateral is made on credit or for future delivery, Secured Party
shall not be required to apply any portion of the sale price to the Secured
Obligations until such amount actually is received by Secured Party, and any
Collateral so sold may be retained by Secured Party until the sale price is paid
in full by the purchaser or purchasers thereof.  Secured Party shall not incur
any liability in case any such purchaser or purchasers shall fail to pay for the
Collateral so sold, and, in case of any such failure, the Collateral may be sold
again.

          10.  Voting Rights; Dividends; etc.  With respect to any Collateral
               -----------------------------
consisting of securities, partnership interests, joint venture interests,
Investments or the like (referred to collectively and individually in this
Section 10 and in Section 11 as the "Investment Collateral"), so long as no
                                     ---------------------
Event of Default occurs and remains continuing:

                  10.1 Voting Rights.  Grantor shall be entitled to exercise any
                       -------------
and all voting and other consensual rights pertaining to the Investment
Collateral, or any part thereof, for any purpose not inconsistent with the terms
of this Agreement, the Loan Agreement, or the other Loan Documents; provided,
                                                                    --------
however, that Grantor shall not exercise, or shall refrain from exercising, any
-------
such right if it would result in a Default.

                  10.2 Dividend and Distribution Rights.  Except as otherwise
                       --------------------------------
provided in any Loan Document, Grantor shall be entitled to receive and to
retain and use any and all dividends or distributions paid in respect of the
Investment Collateral; provided, however, that (subject to any inconsistent
                       --------  -------
prior rights of the Trustee under the 13% Indenture)

                                      -11-
<PAGE>

any and all such dividends or distributions received in the form of capital
stock, certificated securities, warrants, options or rights to acquire capital
stock or certificated securities forthwith shall be, and the certificates
representing such capital stock or certificated securities, if any, forthwith
shall be delivered to Secured Party to hold as pledged Collateral and shall, if
received by Grantor, be received in trust for the benefit of Secured Party, be
segregated from the other Property of Grantor, and forthwith be delivered to
Secured Party as pledged Collateral in the same form as so received (with any
necessary endorsements).

          11.  Rights During Event of Default.  With respect to any Investment
               ------------------------------
Collateral, so long as an Event of Default has occurred and is continuing:

                  11.1 Voting, Dividend, and Distribution Rights. At the option
                       -----------------------------------------
of Secured Party, all rights of Grantor to exercise the voting and other
consensual rights which it would otherwise be entitled to exercise pursuant to
Section 10.1 above, and to receive the dividends and distributions which it
would otherwise be authorized to receive and retain pursuant to Section 10.2
above, shall cease, and all such rights thereupon shall become vested in Secured
Party which thereupon shall have the sole right to exercise such voting and
other consensual rights and to receive and to hold as pledged Collateral such
dividends and distributions.

                   11.2 Dividends and Distributions Held in Trust. All dividends
                        -----------------------------------------
and other distributions which are received by Grantor contrary to the provisions
of this Agreement shall be received in trust for the benefit of Secured Party,
shall be segregated from other funds of Grantor, and (subject to any
inconsistent prior rights of the Trustee under the 13% Indenture) forthwith
shall be paid over to Secured Party as pledged Collateral in the same form as so
received (with any necessary endorsements).

                   11.3 Irrevocable Proxy. Other than any such proxies granted
                        -----------------
to the Trustee under the 13% Indenture, Grantor does hereby revoke all previous
proxies with regard to the Investment Collateral and appoints Secured Party
(subject to any inconsistent prior rights of the Trustee under the 13%
Indenture) as its proxyholder, with power when an Event of Default exists to
attend and vote at any and all meetings of the shareholders or other equity
holders of the Persons that issued the Investment Collateral and any
adjournments thereof, held on or after the date of the giving of this proxy and
prior to the termination of this proxy, and to execute any and all written
consents of shareholders or equity holders of such Persons executed on or after
the date of the giving of this proxy and prior to the termination of this proxy,
with the same effect as if Grantor had personally attended the meetings or had
personally voted its shares or other interests or had personally signed the
written consents; provided, however, that the proxyholder shall have rights
                  --------  -------
hereunder only upon the occurrence and during the continuance of an Event of
Default. Grantor hereby authorizes Secured Party to substitute another Person as
the proxyholder and, upon the occurrence and during the continuance of any Event
of Default, hereby authorizes the proxyholder to file this proxy and
                    -12-
<PAGE>

any substitution instrument with the secretary or other appropriate official of
the appropriate Person. This proxy is coupled with an interest and is
irrevocable until such time as all Secured Obligations have been paid and
performed in full.

          12.  Attorney-in-Fact.  Grantor hereby irrevocably nominates and
               ----------------
appoints Secured Party as its attorney-in-fact for the following purposes:  (a)
upon the occurrence and during the continuance of an Event of Default, to
preserve, process, develop, maintain and protect the Collateral; (b) upon the
occurrence and during the continuance of an Event of Default, to do any and
every act which Grantor is obligated to do under this Agreement, at the expense
of Grantor and without any obligation to do so; (c) to prepare, sign, file
and/or record, for Grantor, in the name of Grantor, any financing statement,
application for registration, or like paper, and to take any other action deemed
by Secured Party necessary or desirable in order to perfect or maintain
perfected the security interests granted hereby; and (d) upon the occurrence and
during the continuance of an Event of Default, to execute any and all papers and
instruments and do all other things necessary or desirable to preserve and
protect the Collateral and to protect Secured Party's security interests
therein; provided, however, that Secured Party shall be under no obligation
         --------  -------
whatsoever to take any of the foregoing actions, and, absent bad faith or actual
malice, Secured Party shall have no liability or responsibility for any act
taken or omission with respect thereto.

          13.  Costs and Expenses.  Grantor agrees to pay to Secured Party all
               ------------------
costs and expenses (including, without limitation, reasonable attorneys' fees
                    ---------
and disbursements) incurred by Secured Party in the enforcement or attempted
enforcement of this Agreement, whether or not an action is filed in connection
therewith, and in connection with any waiver or amendment of any term or
provision hereof.  All advances, charges, costs and expenses, including
                                                              ---------
reasonable attorneys' fees and disbursements, incurred or paid by Secured Party
in exercising any right, privilege, power or remedy conferred by this Agreement
(including, without limitation, the right to perform any Secured Obligation of
 ---------
Grantor under the Loan Documents), or in the enforcement or attempted
enforcement thereof, shall be secured hereby and shall become a part of the
Secured Obligations and shall be paid to Secured Party by Grantor, immediately
upon demand, together with interest from the date which is two Business Days
following such demand thereon at the rate(s) provided for under the Loan
Agreement.

          14.  Statute of Limitations and Other Laws.  Until the Secured
               -------------------------------------
Obligations shall have been paid and performed in full, the power of sale and
all other rights, privileges, powers and remedies granted to Secured Party
hereunder shall continue to exist and may be exercised by Secured Party at any
time and from time to time irrespective of the fact that any of the Secured
Obligations may have become barred by any statute of limitations.  Grantor
expressly waives the benefit of any and all statutes of limitation, and any and
all Laws providing for exemption of property from execution or for valuation and
appraisal upon foreclosure, to the maximum extent permitted by applicable Law.

                                      -13-
<PAGE>

          15.  Other Agreements.  Nothing herein shall in any way modify or
               ----------------
limit the effect of terms or conditions set forth in any other security or other
agreement executed by Grantor or in connection with the Secured Obligations, but
each and every term and condition hereof shall be in addition thereto.  All
provisions contained in the Loan Agreement or any other Loan Document that apply
to Loan Documents generally are fully applicable to this Agreement and are
incorporated herein by this reference.

          16.  Continuing Effect.  This Agreement shall remain in full force and
               -----------------
effect and continue to be effective should any petition be filed by or against
Grantor for liquidation or reorganization, should Grantor become insolvent or
make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any significant part of Grantor's assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable Law, rescinded or reduced in amount, or must otherwise be
restored or returned by the Administrative Agent or any Lender, whether as a
"voidable preference," "fraudulent conveyance," or otherwise, all as though such
payment or performance had not been made.  In the event that any payment or any
part thereof is rescinded, reduced, restored or returned, the Secured
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

          17.  Release of Grantor.  This Agreement and all Secured Obligations
               ------------------
of Grantor hereunder shall be released when all Secured Obligations have been
paid in full in cash or otherwise performed in full and when no portion of the
Commitment remains outstanding. Upon such release of Grantor's Secured
Obligations hereunder, Secured Party shall return and reassign any pledged
Collateral to Grantor, or to the Person or Persons legally entitled thereto, and
shall endorse, execute, deliver, record and file all instruments and documents,
and do all other acts and things, reasonably required for the return of the
Collateral to Grantor, or to the Person or Persons legally entitled thereto, and
to evidence or document the release of Secured Party's interests arising under
this Agreement, all as reasonably requested by, and at the sole expense of,
Grantor. The Secured Party shall take all action as reasonably required to
evidence or document the release of the Secured Party's interests to any
Collateral which the Grantor sells, transfers or otherwise disposes of as
permitted under the terms of the Loan Agreement, at the sole expense of Grantor.

          18.  Counterparts.  This Agreement may be executed in one or more
               ------------
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute one and the same agreement.

          19.  Additional Powers and Authorization.  The Administrative Agent
               -----------------------------------
has been appointed as the Administrative Agent hereunder pursuant to the Loan
Agreement and shall be entitled to the benefits of the Loan Agreement and the
other Loan Documents.

                                      -14-
<PAGE>

Notwithstanding anything contained herein to the contrary, the Administrative
Agent may employ agents, trustees, or attorneys-in-fact and may vest any of them
with any Property (including, without limitation, any Collateral pledged
hereunder), title, right or power deemed necessary for the purposes of such
appointment.

          20.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
               -------------
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA WITHOUT
REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF.

          21.  WAIVER OF JURY TRIAL.  GRANTOR AND SECURED PARTY EXPRESSLY WAIVE
               --------------------
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE LOAN
AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY
OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER NOW EXISTING OR
HEREAFTER ARISING AND WHETHER WITH

                                      -15-
<PAGE>

RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  GRANTOR AND SECURED
PARTY AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE
PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF
THIS AGREEMENT, THE LOAN AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION
HEREOF OR THEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, THE LOAN AGREEMENT AND
THE OTHER LOAN DOCUMENTS.  ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

          IN WITNESS WHEREOF, Grantor has executed this Agreement by its duly
authorized officer as of the date first written above.

                                     "Grantor"

                                     COAST RESORTS, INC.,
                                     a Nevada corporation

                                     By:______________________________
                                     Gage Parrish, Vice President
                                     and Chief Financial Officer

                                      -16-
<PAGE>

ACCEPTED AND AGREED
AS OF THE DATE FIRST
ABOVE WRITTEN:

"Secured Party"

BANK OF AMERICA NATIONAL
TRUST AND SAVINGS ASSOCIATION,
as Administrative Agent, and
for and on behalf of the Lenders

By:_________________________________
Janice Hammond, Vice President

                                      -17-<PAGE>

                                                                   EXHIBIT 10.51

                                PLEDGE AGREEMENT
                                ----------------

          This PLEDGE AGREEMENT ("Agreement"), dated as of September 24, 1999,
is made by COAST RESORTS, INC., a Nevada corporation, as Grantor, in favor of
and for the benefit of BANK OF AMERICA, N.A., as Administrative Agent under the
Amended and Restated Loan Agreement hereafter referred to, and in favor of each
of the Lenders therein named, collectively as Secured Party, with reference to
the following facts:

                                    RECITALS
                                    --------

          A.   Pursuant to the Amended and Restated Loan Agreement dated as of
September 9, 1999 among Coast Hotels and Casinos, Inc., a Nevada corporation
("Borrower"), the lenders from time to time a party thereto (collectively, the
"Lenders" and individually, a "Lender") and Bank of America, N.A., as
Administrative Agent (as such agreement may from time to time be extended,
modified, renewed, restated, supplemented or amended, the "Loan Agreement"), the
Lenders have agreed to extend certain credit facilities to Borrower.

          B.   The Loan Agreement requires Grantor to enter into this Agreement,
and to pledge certain Pledged Collateral to Secured Party, all under the terms
and conditions set forth in this Agreement.

          C.   Grantor expects to realize direct and indirect benefits as a
result of the availability of the aforementioned credit facilities.

                                   AGREEMENT
                                   ---------

          NOW, THEREFORE, in order to induce the Lenders to extend credit
facilities to Borrower under the Loan Agreement, and for other good and valuable
consideration, the receipt and adequacy of which hereby are acknowledged,
Grantor hereby represents, warrants, covenants, agrees, and pledges as follows:

     1.   Definitions. This Agreement is the Coast Resorts Pledge Agreement
          -----------
referred to in the Loan Agreement. Terms defined in the Loan Agreement and not
otherwise defined in this Agreement shall have the meanings given those terms in
the Loan Agreement as though set forth herein in full. The following terms shall
have the meanings respectively set forth after each:

          "Agreement" means this Pledge Agreement, and any extensions,
           ---------
     modifications, renewals, restatements, supplements or amendments hereof.

          "Certificates" means all certificates, instruments or other documents
           ------------
     now or

                                      -1-
<PAGE>

     hereafter representing or evidencing any Pledged Securities.

          "Pledged Collateral" means the Pledged Securities, any Certificates
           ------------------
     representing or evidencing the same, any and all proceeds and products of
     any of the foregoing, and any and all collections, dividends,
     distributions, redemption payments, liquidation payments, interest or
     premiums with respect to any of the foregoing (other than any dividends and
     distributions which are Distributions made by Borrower in accordance with
     the Loan Agreement).

          "Pledged Securities" means (i) 100% of the shares of the issued and
           ------------------
     outstanding capital stock of Borrower, (ii) any and all securities now or
     hereafter issued in substitution, exchange or replacement therefor, or with
     respect thereto, and (iii) any and all warrants, options or other rights to
     subscribe to or acquire any additional capital stock of Borrower.

          "Secured Party" means the Administrative Agent (acting as the
           -------------
     Administrative Agent and/or on behalf of the Lenders), and the Lenders, and
     each of them, and any one or more of them. Subject to the terms hereof and
     of the Loan Agreement, any right, remedy, privilege or power of Secured
     Party may be exercised by the Administrative Agent, or by the Requisite
     Lenders, or by any Lender acting with the consent of the Requisite Lenders.

     2.   Incorporation of Representations, Warranties, Covenants and Other
          -----------------------------------------------------------------
Provisions of Loan Documents. This Agreement is one of the Loan Documents
----------------------------
referred to in the Loan Agreement. All representations, warranties, affirmative
and negative covenants and other provisions contained in any Loan Document that
are applicable to Loan Documents generally are fully applicable to this
Agreement and are incorporated herein by this reference as though set forth in
full. Grantor further represents and warrants that, other than as permitted
under the Loan Agreement, Grantor has full title to the Pledged Collateral, free
and clear of any Lien, security interest, encumbrance or claim.

     3.   Creation of Security Interest.
          -----------------------------

          3.1  Pledge of Pledged Collateral. Grantor hereby pledges to
               ----------------------------
Administrative Agent on behalf of Secured Party and grants to Administrative
Agent on behalf of Secured Party a security interest in and to all Pledged
Collateral for the benefit of Secured Party as security for the Obligations
specified in Section 4 below, together with all products, proceeds, dividends,
redemption payments, liquidation payments, instruments and other Property, and
any and all rights, titles, interests, privileges, benefits and preferences
appertaining or incidental to the Pledged Collateral. Grantor represents and
warrants that the security interests and pledge granted herein are in material
compliance with all applicable Laws, including without limitation all Gaming
Laws, and that any non-compliance with such Laws does not affect the Liens
granted hereby. The security interest and pledge created by this Section 3.1

                                      -2-
<PAGE>

shall continue in effect so long as any Obligation is owed to Secured Party or
any commitment to extend credit to Borrower remains outstanding from Secured
Party.

          3.2  Delivery of Certain Pledged Collateral. Pursuant to the Escrow
               --------------------------------------
Agreement, Grantor has heretofore delivered the Certificates evidencing 100% of
the capital stock of the Borrower to Secured Party to be held by the
Administrative Agent in the State of Nevada. Subject to compliance with Gaming
Laws, additional Pledged Collateral may from time to time be delivered to
Administrative Agent for the benefit of Secured Party by agreement between
Secured Party and Grantor. All Certificates at any time delivered to
Administrative Agent for the benefit of Secured Party shall be in suitable form
for transfer by delivery, or shall be accompanied by duly executed instruments
of transfer or assignment in blank, all in form and substance satisfactory to
Secured Party. Administrative Agent shall hold all Certificates pledged
hereunder pursuant to this Agreement unless and until released in accordance
with Section 3.3 of this Agreement.

          3.3  Release of Pledged Collateral. Pledged Collateral that is
               -----------------------------
required to be released from the pledge and security interest created by this
Agreement in order to permit Grantor to consummate any disposition of stock or
assets, merger, consolidation, amalgamation, acquisition, or dividend payment or
distribution that Grantor is entitled to consummate pursuant to the Loan
Documents, if any, shall be so released by Administrative Agent at such times
and to the extent necessary to permit Grantor to consummate such permitted
transactions promptly following the Administrative Agent's receipt of written
request therefor by Grantor specifying the purpose for which release is
requested and such further certificates or other documents as Administrative
Agent on behalf of Secured Party reasonably shall request in its discretion to
confirm that Grantor is permitted to consummate such permitted transaction and
to confirm Secured Party's replacement lien on appropriate collateral. Any
request for any permitted release shall be transmitted to Administrative Agent
on behalf of Secured Party. Subject to compliance with Gaming Laws,
Administrative Agent, at the expense of Grantor, promptly shall redeliver all
Certificates and shall execute and deliver to Grantor all documents requested by
Grantor that are reasonably necessary to release Pledged Collateral of record
whenever Grantor shall be entitled to the release thereof in accordance with
this Section 3.3.

     4.   Security for Obligations. This Agreement and the pledge and security
          ------------------------
interests granted herein secure the prompt payment, in full in cash, and full
performance of, all Obligations of Grantor, whether now existing or hereafter
arising under the Guaranty, this Agreement and the Loan Documents, and all
interest that accrues on all or any part of any of the obligations of Grantor
after the filing of any petition or pleading against Grantor or any other Person
for a proceeding under any Debtor Relief Law.

     5.   Subordinate Lien.  Notwithstanding anything to the contrary contained
          ----------------
in this Agreement, Administrative Agent shall hold all Pledged Securities
delivered to Administrative Agent hereunder for the benefit of Secured Party and
for the benefit of the

                                      -3-
<PAGE>

Trustee for the 13% Indenture, with the understanding that the security
interests of Secured Party created hereunder shall be of second priority,
subject only to the Lien of the Trustee for the benefit of the holders of the
Notes under the 13% Indenture (to the extent such Indebtedness is permitted
under the Loan Agreement) as further provided in that certain Escrow Agreement
dated as of January 30, 1996 among Grantor, American Bank National Association,
as Trustee under the Indenture referred to in such agreement, and Bank of
America Nevada, as such agreement is amended by that certain Amendment to Escrow
Agreement dated as of March 18, 1999.

     6.   Further Assurances.
          ------------------

          6.1  Subject to compliance with applicable Gaming Laws, Grantor agrees
that at any time, and from time to time, at its own expense Grantor will
promptly execute, deliver and file or record all further financing statements,
instruments and documents, and will take all further actions, including, without
limitation, causing the Subsidiaries whose capital stock or other securities are
pledged hereunder to so execute, deliver, file or take other actions, that may
be necessary or desirable, or that Secured Party reasonably may request, in
order to perfect and protect any pledge or security interest granted hereby or
to enable Secured Party to exercise and enforce its rights and remedies
hereunder with respect to any Pledged Collateral and to preserve, protect and
maintain the Pledged Collateral, including, without limitation, payment of all
taxes, assessments and other charges imposed on or relating to the Pledged
Collateral, provided that nothing contained herein shall require the Lien of
this Agreement to be prior to that of the 13% Indenture and the collateral
documents securing the same to the extent that such Indebtedness is permitted by
the terms of the Loan Agreement. It is hereby acknowledged and agreed that,
notwithstanding anything contained herein or in any other Collateral Document,
Grantor shall not be required under any circumstance to take any further action
to perfect any interest granted to Secured Party in any cage cash, deposit
accounts, markers, instruments or other cash items which are used in connection
with the casino operations of Grantor. Subject to compliance with applicable
Gaming Laws, Grantor hereby consents and agrees that the issuers of, or obligors
on, the Pledged Collateral, or any registrar or transfer agent or trustee for
any of the Pledged Collateral, shall be entitled to accept the provisions of
this Agreement as conclusive evidence of the right of Secured Party to effect
any transfer or exercise any right hereunder, notwithstanding any other notice
or direction to the contrary heretofore or hereafter given by Grantor or any
other Person to such issuers or such obligors or to any such registrar or
transfer agent or trustee.

          6.2  Grantor agrees to assist Administrative Agent in obtaining all
approvals of any Gaming Board or other Governmental Authority that are required
by law for or in connection with any action or transaction contemplated by this
Agreement and, at Secured Party's request after and during the continuance of an
Event of Default, to prepare, sign and file with the appropriate Gaming Board
the transferor's portion of any application or applications for consent to the
transfer of control thereof necessary or appropriate under applicable Gaming
Laws for approval of any sale or transfer of the Pledged Collateral

                                      -4-
<PAGE>

pursuant to the exercise of Secured Party's remedies hereunder and under the
Loan Documents.

     7.   Voting Rights; Dividends; etc. So long as no Event of Default under
          -----------------------------
the Loan Agreement occurs and remains continuing:

          7.1  Voting Rights. Grantor shall be entitled to exercise any and all
               -------------
voting and other consensual rights pertaining to the Pledged Securities, or any
part thereof, for any purpose not inconsistent with the terms of this Agreement,
the Loan Agreement, or the other Loan Documents.

          7.2  Interest, Dividend and Distribution Rights. Grantor shall be
               ------------------------------------------
entitled to receive and to retain and use any and all interest, premiums,
dividends or distributions paid in respect of the Pledged Collateral; provided,
                                                                      --------
however, that (subject to any inconsistent prior rights of the Trustee under the
-------
13% Indenture) any and all such dividends or distributions received in the form
of capital stock shall be, and the Certificates representing such capital stock
forthwith shall be delivered to Administrative Agent (or to Bank of America
Nevada on its behalf) to hold as, Pledged Collateral and shall, if received by
Grantor, be received in trust for the benefit of Secured Party, be segregated
from the other property of Grantor, and forthwith be delivered to Administrative
Agent for the benefit of Secured Party as Pledged Collateral in the same form as
so received (with any necessary endorsements). If Secured Party causes any
Certificates to be registered in the name of Secured Party, Secured Party agrees
to grant applicable proxies with respect to such Certificates in favor of
Grantor.

     8.   Rights During Event of Default. Following the occurrence of any Event
          ------------------------------
of Default, but subject to compliance with Gaming Laws (subject to any
inconsistent prior rights of the Trustee under the 13% Indenture):

          8.1  Voting and Distribution Rights. At the option of Secured Party,
               ------------------------------
all rights of Grantor to exercise the voting and other consensual rights which
it would otherwise be entitled to exercise pursuant to Section 7.1 above, and to
receive the interest, premiums, dividends and distributions which it would
otherwise be authorized to receive and retain pursuant to Section 7.2 above,
shall cease, and all such rights shall thereupon become vested in Administrative
Agent for the benefit of Secured Party who shall thereupon, at the direction of
Administrative Agent, have the sole right to exercise such voting and other
consensual rights and to receive and to hold as Pledged Collateral such
dividends and distributions.

          8.2  Distributions Held in Trust.  All dividends and other
               ---------------------------
distributions which are received by Grantor contrary to the provisions of this
Agreement shall be received in trust for the benefit of Secured Party, shall be
segregated from other funds of Grantor, and forthwith shall be paid over to
Administrative Agent for the account of Secured Party as Pledged Collateral in
the same form as so received (with any necessary endorsements).

                                      -5-
<PAGE>

          8.3  Irrevocable Proxy. Other than any such proxies heretofore granted
               -----------------
to the Trustee under the 13% Indenture, Grantor hereby revokes all previous
proxies with regard to the Pledged Securities and, to the extent allowable under
applicable Law (including, without limitation, applicable Gaming Laws), appoints
Administrative Agent for the benefit of Secured Party as its proxy holder to
attend and vote at any and all meetings of the shareholders of the Subsidiaries
whose capital stock or other securities are pledged hereunder, and any
adjournments thereof, held on or after the date of the occurrence of an Event of
Default and prior to the termination of this proxy and to execute any and all
written consents of shareholders of such corporations executed on or after the
date of the occurrence of an Event of Default and prior to the termination of
this proxy, with the same effect as if Grantor had personally attended the
meetings or had personally voted its shares or had personally signed the written
consents; provided, however, that the proxy holder shall have rights hereunder
only upon the occurrence and during the continuance of an Event of Default under
the Loan Agreement and that such rights shall be subject to compliance with all
applicable Gaming Laws. Grantor hereby authorizes Administrative Agent,
following the occurrence of an Event of Default and the acceleration of the
Obligations under the Loan Agreement, to substitute another person as the proxy
holder and, thereupon to file this proxy and the substitution instrument with
the secretary of the appropriate corporation. This proxy is coupled with an
interest and is irrevocable until such time as no commitment to extend credit to
Borrower remains outstanding from Secured Party and until such time as all
Obligations have been paid and performed in full.

          8.4  Suspension of Rights.  Promptly after the cure or written waiver
               --------------------
of the Event of Default giving rise to Secured Party's rights under this Section
8, and if no other Event of Default then exists, Secured Party shall confirm to
Grantor and Borrower upon their request of such waiver or cure and the further
exercise by Secured Party of the rights and remedies granted under this Section
8 shall thereafter be suspended unless a subsequent Event of Default occurs.

     9.   Transfers and Other Liens. Subject to compliance with Gaming Laws,
          -------------------------
Grantor agrees that, except as specifically permitted under the Loan Documents,
it will not (i) sell, assign, exchange, transfer or otherwise dispose of, or
contract to sell, assign, exchange, transfer or otherwise dispose of, or grant
any option with respect to, any of the Pledged Collateral, (ii) create or permit
to exist any Lien upon or with respect to any of the Pledged Collateral, or
(iii) take any action with respect to the Pledged Collateral which is
inconsistent with the provisions or purposes of this Agreement or any other Loan
Document.

     10.  Secured Party Appointed Attorney-in-Fact. Subject to compliance with
          ----------------------------------------
Gaming Laws and to any inconsistent prior rights of the Trustee under the 13%
Indenture, Grantor hereby irrevocably appoints Administrative Agent for the
benefit of Secured Party as Grantor's attorney-in-fact, with full authority in
the place and stead of Grantor, and in the name of Grantor, or otherwise, from
time to time, in Secured Party's sole and absolute discretion to do any of the
following acts or things: (a) to do all acts and things and to execute

                                      -6-
<PAGE>

all documents necessary or advisable to perfect and continue perfected the
security interests created by this Agreement and to preserve, maintain and
protect the Pledged Collateral; (b) if Grantor fails to take any action within
ten days after request, to do any and every act which Grantor is obligated to do
under this Agreement; (c) to prepare, sign, file and record, in Grantor's name,
any financing statement covering the Pledged Collateral; and (d) to endorse and
transfer the Pledged Collateral upon foreclosure by Secured Party; provided,
however, that Administrative Agent shall be under no obligation whatsoever to
take any of the foregoing actions, and neither Administrative Agent nor any
Secured Party shall have any liability or responsibility for any act (other than
Administrative Agent's or any Secured Party's own gross negligence or willful
misconduct) or omission taken with respect thereto. Grantor hereby agrees to
repay immediately upon demand all reasonable costs and expenses incurred or
expended by Secured Party in exercising any right or taking any action under
this Agreement, together with interest from the date which is two Business Days
following such demand thereof at the Default Rate.

     11.  Administrative Agent May Perform Obligations. If Grantor fails to
          --------------------------------------------
perform any Obligation contained herein for ten days after demand,
Administrative Agent, subject to compliance with applicable Gaming Laws and the
prior inconsistent rights of the Trustee under the 13% Indenture), may, but
without any obligation to do so and without notice to or demand upon Grantor,
perform the same and take such other action as Secured Party may deem necessary
or desirable to protect the Pledged Collateral or Secured Party's security
interests therein, Administrative Agent being hereby authorized (without
limiting the general nature of the authority hereinabove conferred) to pay,
purchase, contest and compromise any Lien which in the reasonable judgment of
Secured Party appears to be prior or superior to Secured Party's security
interests, and in exercising any such powers and authority to pay necessary
expenses, employ counsel and pay reasonable attorneys' fees. Grantor hereby
agrees to repay immediately upon demand all sums so expended by Secured Party,
together with interest from the date which is two Business Days following demand
at the Default Rate. Neither Administrative Agent nor any Secured Party shall be
under any duty or obligation to (i) preserve, maintain or protect the Pledged
Collateral or any of Grantor's rights or interest therein, (ii) exercise any
voting rights with respect to the Pledged Collateral, or (iii) make or give any
notices of default, presentments, demands for performance, notices of
nonperformance or dishonor, protests, notices of protest or notice of any other
nature whatsoever in connection with the Pledged Collateral on behalf of Grantor
or any other Person having any interest therein; and neither Administrative
Agent nor any Secured Party assumes and none shall be obligated to perform the
obligations of Grantor, if any, with respect to the Pledged Collateral.

     12.  Reasonable Care. Administrative Agent shall be deemed to have
          ---------------
exercised reasonable care in the custody and preservation of the Pledged
Collateral in its possession if the Pledged Collateral is accorded treatment
substantially similar to that which Administrative Agent accords its own
property, it being understood that Administrative Agent shall not have any
responsibility for (i) ascertaining or taking action with respect to maturities,
calls,

                                      -7-
<PAGE>

conversions, exchanges, tenders or other matters relative to any Pledged
Collateral, whether or not Administrative Agent has or is deemed to have
knowledge of such matters, or (ii) taking any necessary steps to preserve rights
against any Person with respect to any Pledged Collateral. The Administrative
Agent shall comply with the conditions, if any, imposed by any Gaming Board in
connection with the approvals of the security interest granted hereunder by
Grantor, including, without limitation, any conditions requiring Administrative
Agent to permit representatives of the Gaming Board to inspect such securities
and Certificates. Administrative Agent shall not surrender possession of any
Pledged Collateral to any party other than Grantor without the prior approval of
the applicable Gaming Board or as otherwise permitted by applicable Gaming Laws.

     13.  Events of Default and Remedies.
          ------------------------------

          13.1 Rights Upon Event of Default. Upon the occurrence and during the
               ----------------------------
continuance of an Event of Default under the Loan Agreement, Grantor shall be in
default hereunder and, subject to compliance with applicable Gaming Laws,
Secured Party shall have in any jurisdiction where enforcement is sought, in
addition to all other rights and remedies that Secured Party may have under this
Agreement and under applicable law or in equity, all of its rights and remedies
as a secured party under the Uniform Commercial Code as enacted in any such
jurisdiction, and in addition, subject to compliance with Gaming Laws, the
following rights and remedies, all of which may be exercised with or without
further notice to Grantor:

               (1) to notify any issuer of any Pledged Collateral that the same
     has been pledged to Administrative Agent for the benefit of Secured Party
     and that all dividends and other payments thereon are to be made directly
     and exclusively to Administrative Agent for the account of Secured Party;
     to renew, extend, modify, amend, accelerate, accept partial payments on,
     make allowances and adjustments and issue credits with respect to, release,
     settle, compromise, compound, collect or otherwise liquidate, on terms
     acceptable to Secured Party, in whole or in part, the Pledged Collateral
     and any amounts owing thereon; to enter into any other agreement relating
     to or affecting the Pledged Collateral; and to give all consents, waivers
     and ratifications with respect to the Pledged Collateral and exercise all
     other rights (including voting rights), powers and remedies and otherwise
     act with respect thereto as if Secured Party were the owner thereof;

               (2) to enforce payment and prosecute any action or proceeding
     with respect to any and all of the Pledged Collateral and take or bring, in
     Secured Party's name(s) or in the name of Grantor, all steps, actions,
     suits or proceedings deemed by Secured Party necessary or desirable to
     effect collection of or to realize upon the Pledged Collateral;

               (3) in accordance with applicable Law (including, without

                                      -8-
<PAGE>

     limitation, applicable Gaming Laws), to take possession of the Pledged
     Collateral with or without judicial process;

               (4) to endorse, in the name of Grantor, all checks, notes,
     drafts, money orders, instruments and other evidences of payment relating
     to the Pledged Collateral;

               (5) to transfer any or all of the Pledged Collateral into the
     name of Secured Party or its nominee or nominees; and

               (6) in accordance with all applicable Laws (including, without
     limitation, applicable Gaming Laws), to foreclose the liens and security
     interests created under this Agreement or under any other agreement
     relating to the Pledged Collateral by any available judicial procedure or
     without judicial process, and to sell, assign or otherwise dispose of the
     Pledged Collateral or any part thereof, either at public or private sale or
     at any broker's board or securities exchange, in lots or in bulk, for cash,
     on credit or on future delivery, or otherwise, with or without
     representations or warranties, and upon such terms as shall be acceptable
     to Secured Party; all at the sole option of and in the sole discretion of
     Secured Party.

          13.2 Notice of Sale. Secured Party shall give Grantor at least ten
               --------------
days' written notice of sale of all or any part of the Pledged Collateral.
Subject to compliance with Gaming Laws, any sale of the Pledged Collateral shall
be held at such time or times and at such place or places as Secured Party may
determine in the exercise of its sole and absolute discretion. Secured Party may
bid (which bid may be, in whole or in part, in the form of cancellation of
Obligations) for and purchase for the account of Secured Party or any nominee of
Secured Party the whole or any part of the Pledged Collateral. Secured Party
shall not be obligated to make any sale of the Pledged Collateral if it shall
determine not to do so regardless of the fact that notice of sale of the Pledged
Collateral may have been given. Secured Party may, without notice or
publication, adjourn the sale from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the
time and place to which the same was so adjourned.

          13.3 Private Sales. Subject to compliance with Gaming Laws, upon the
               -------------
occurrence and during the continuance of an Event of Default under the Loan
Agreement, whether or not any of the Pledged Collateral has been effectively
registered under the Securities Act of 1933, as amended, or other applicable
Laws, Secured Party may, in its sole and absolute discretion, sell all or any
part of the Pledged Collateral at private sale in such manner and under such
circumstances as Secured Party may deem necessary or advisable in order that the
sale may be lawfully conducted. Without limiting the foregoing, Secured Party
may (i) approach and negotiate with a limited number of potential purchasers,
and (ii) restrict the prospective bidders or purchasers to Persons who will
represent and agree that they are

                                      -9-
<PAGE>

purchasing the Pledged Collateral for their own account for investment and not
with a view to the distribution or resale thereof. In the event that any of the
Pledged Collateral is sold at private sale, Grantor agrees that if the Pledged
Collateral is sold for a price which Secured Party in good faith believes to be
reasonable, then (A) the sale shall not be deemed to be commercially
unreasonable by reason of price, (B) Grantor shall not be entitled to a credit
against the Obligations in an amount in excess of the purchase price, and (C)
Secured Party shall not incur any liability or responsibility to Grantor in
connection therewith, notwithstanding the possibility that a substantially
higher price might have been realized at a public sale. Grantor recognizes that
a ready market may not exist for Pledged Securities which are not regularly
traded on a recognized securities exchange or in another recognized market, and
that a sale by Secured Party of any such Pledged Securities for an amount
substantially less than a pro rata share of the fair market value of the
issuer's assets minus liabilities may be commercially reasonable in view of the
difficulties that may be encountered in attempting to sell a large amount of
Pledged Securities or Pledged Securities that are privately traded.

          13.4 Title of Purchasers. Subject to applicable requirements of Law
               -------------------
(including, without limitation, applicable Gaming Laws), upon consummation of
any sale of Pledged Collateral pursuant to this Section 13, Administrative Agent
on behalf of Secured Party shall have the right to assign, transfer and deliver
to the purchaser or purchasers thereof the Pledged Collateral so sold. Each such
purchaser at any such sale shall hold the Pledged Collateral sold absolutely
free from any claim or right on the part of Grantor, and Grantor hereby waives
all rights of redemption, stay and appraisal which it now has or may at any time
in the future have under any rule of Law or statute now existing or hereafter
enacted.

          13.5 Disposition of Proceeds of Sale. The net cash proceeds resulting
               -------------------------------
from the collection, liquidation, sale or other disposition of the Pledged
Collateral shall be applied, first, to the reasonable costs and expenses
                             -----
(including reasonable attorneys' fees) of retaking, holding, storing, processing
and preparing for sale, selling, collecting and liquidating the Pledged
Collateral, and the like; second, to the satisfaction of all Obligations, with
                          ------
application as to any particular Obligations to be in the order set forth in the
Loan Agreement or other Loan Documents; third, to all other indebtedness secured
                                        -----
hereby in such order and manner as Secured Party in its sole and absolute
discretion may determine, and fourth, if any balance remains, to Grantor or
                              ------
Grantor's designee.

     14.  Regulatory Matters. Administrative Agent, on behalf of Secured Party,
          ------------------
acknowledges and agrees that:

               (1) In the event that Secured Party exercises one or more of the
     remedies set forth in Section 13 of this Agreement, including but not
     limited to reregistration of the Pledged Collateral pursuant to applicable
     Gaming Laws, such exercise of remedies would be deemed a separate transfer
     of the Pledged Collateral and would require the separate and prior approval
     of the applicable Gaming Board pursuant to applicable Gaming Laws as in
     effect on the date hereof.

                                      -10-
<PAGE>

               (2) The approval by the applicable Gaming Board of this Agreement
     shall not act or be construed as the approval, either express or implied,
     for Secured Party to take any actions or steps provided for in this
     Agreement for which prior approval of the Gaming Board is required, without
     first obtaining such prior and separate approval of the Gaming Board to the
     extent then required by applicable Law.

     15.  Continuing Effect. This Agreement shall remain in full force and
          -----------------
effect and continue to be effective should any petition be filed by or against
Grantor for liquidation or reorganization, should Grantor become insolvent or
make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any significant part of Grantor's assets.

     16.  Covenant Not to Issue Uncertificated Securities. Grantor represents
          -----------------------------------------------
and warrants to Secured Party that all of the capital stock of each of  its
Subsidiaries is and will be in certificated form (as contemplated by Article 8
of the Uniform Commercial Code), and, subject to compliance with applicable
Gaming Laws, covenants to Secured Party that it will not cause or permit its
Subsidiaries to issue any capital stock in uncertificated form or seek to
convert all or any part of its existing capital stock into uncertificated form
(as contemplated by Article 8 of the Uniform Commercial Code). The foregoing
representations, warranties and covenants shall survive the execution and
delivery of this Agreement.

     17.  Covenant Not to Dilute Interests of Secured Party in Pledged
          ------------------------------------------------------------
Securities. Subject to compliance with applicable Gaming Laws and except as
----------
otherwise permitted by the Loan Agreement, Grantor represents, warrants and
covenants to Secured Party that it will not at any time cause or permit its
Subsidiaries to issue any additional capital stock, or any warrants, options or
other rights to acquire any additional capital stock, if the effect thereof
would be to dilute in any way the interests of Secured Party in any Pledged
Securities or any corporation whose securities constitute Pledged Securities.

     18.  Indemnity. Grantor agrees to indemnify and hold harmless Secured
          ---------
Party, and each of them, from and against any and all claims, demands, losses,
judgments and liabilities (including, without limitation liabilities for
penalties) of whatsoever kind or nature, and to reimburse Secured Party for all
costs and expenses, including without limitation reasonable attorneys' fees and
expenses and/or costs and expenses associated with obtaining required approvals
of any Gaming Board, arising out of or in connection with this Agreement or the
exercise by Secured Party of any right or remedy granted to it hereunder or
under the Loan Documents, other than arising from the gross negligence or
willful misconduct of Secured Party or as to any claim asserted by Secured Party
against Grantor or any of its Subsidiaries to the extent that Grantor or such
Subsidiaries prevails on that claim in a final and non-appealable determination
by a court of competent jurisdiction or an arbitrator  appointed in accordance
with the Loan Agreement. In no event shall Secured Party be liable for any
matter or thing in connection with this Agreement other than to account for
monies actually received

                                      -11-
<PAGE>

by it in accordance with the terms hereof. If and to the extent that the
agreements of Grantor under this Section 18 are unenforceable for any reason,
Grantor hereby agrees to make the maximum contribution to the payment and
satisfaction of such obligations which is permissible under applicable Law.

     19.  Governing Law. This Agreement shall be construed and enforced in
          -------------
accordance with and governed by the Laws of the State of California and in
accordance with applicable Gaming Laws; provided that in the event of a conflict
of such laws, applicable Gaming Laws will prevail to the extent required by the
mandatory provisions of such Gaming Laws.

     20.  Counterparts. This Agreement may be executed in one or more
          ------------
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute one and the same agreement.

     21.  Additional Powers and Authorization. The Administrative Agent has been
          -----------------------------------
appointed as the Administrative Agent hereunder pursuant to the Loan Agreement
and shall be entitled to the benefits of the Loan Agreement and the other Loan
Documents. Notwithstanding anything contained herein to the contrary, the
Administrative Agent may employ agents, trustees, or attorneys-in-fact and,
subject to compliance with applicable Gaming Laws, may vest any of them with any
property (including, without limitation, the Pledged Collateral), title, right
or power deemed necessary for the purposes of such appointment.

     IN WITNESS WHEREOF, Grantor has caused this Agreement to be duly executed
as of the date first above written.

                              "Grantor"

                              COAST RESORTS, INC., a Nevada corporation

                              By:   ___________________________
                                    Gage Parrish, Vice President and Chief
                                    Financial Officer

                                      -12-
<PAGE>

                                   SCHEDULE 1
                                   ----------
<TABLE>
<CAPTION>
                                    Class             Stock               Number            Percentage
Stock                                of            Certificate              of                 of
Issuer                              Stock             No(s).              Shares            Ownership
---------                           -----             ------              ------            ---------
<S>                                 <C>                <C>                  <C>                  <C>

Coast Hotels and Casinos, Inc.      Common              001                 1,000               100%
</TABLE>

                                      -13-

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