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

                                  FORM 10-QSB


 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
   OF 1934
For the quarterly period ended June 30, 2006

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from       to

Commission File No. 000-05474

              NORTH AMERICAN GAMING AND ENTERTAINMENT CORPORATION

                    Delaware                           75-2571032
               -------------------------    -----------------------
       (State or other jurisdiction of     (IRS Employer Identification No.)
       incorporation or organization)

                13150 Coit Road, Suite 125, Dallas, Texas 75240
    ----------------------------------------------------------------------
                   (Address of principal executive offices)

                                (972) 671-1133
                          --------------------------
                          (Issuer's telephone number)

Check  whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the  Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
                         [X] YES    [ ] NO

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act.
                         [X]    YES  [ ] NO

                 APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether  the  registrant  filed  all documents and reports required to be
filed by Section 12, 13 or 15 (d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
                 [ ]    YES    [ ] NO

                     APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding   of  each  of  the  issuer's classes of
common equity, as of the latest practicable date: June 30, 2006: 24,216,058

Transitional Small Business Disclosure Format (check one)   Yes [ ] No [X]



<PAGE>

<TABLE>
<CAPTION>

NORTH AMERICAN GAMING AND ENTERTAINMENT
  CORPORATION
BALANCE SHEETS (UNAUDITED)
                                                       June 30,       December 31,
                                                     	 2006            2005
                                            	     (UNAUDITED)
						     -----------      ------------
<S>							<C>		<C>

ASSETS
Current assets:

Cash                                        	     $      477       $	     2,504
Interest receivable                              	 27,606             21,620
						     ----------       ------------
Total current assets                                     28,083        	    24,124

Property and equipment, net of
   accumulated deprecation     				  3,152              3,125
Note receivable                                         133,000       	   133,000
						     ----------       ------------

Total assets                                         $	164,235       $    160,249
						     ==========	      ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable                                        $	327,006       $    265,512
Accounts payable and accrued liabilities                 81,845        	    65,578
Preferred stock dividends payable                        15,003        	    15,003
						     ----------       ------------
Total current liabilities                         	423,854            346,093
						     ----------       ------------
Commitments and contingencies

Stockholders' Deficit:
Common stock, $.01 par value, 100,000,000 shares
   authorized, 41,788,552 shares issued                 417,886       	   417,886
Additional paid-in capital                              489,214       	   489,214
Treasury stock, 17,572,494 shares, at cost             (489,258)     	  (489,258)
Accumulated deficit                                    (677,461)     	  (603,686)
						     ----------       ------------
Total stockholders deficit                             (259,619)     	  (185,844)
						     ----------       ------------

Total liabilities and stockholders' deficit          $	164,235       $   1 60,249
						     ==========	      ============


                                       1
The accompanying notes are an integral part of the financial statements.
</TABLE>



<PAGE>

<TABLE>
<CAPTION>

NORTH AMERICAN GAMING AND ENTERTAINMENT
  CORPORATION
STATEMENTS OF OPERATIONS (UNAUDITED)

                                                           THREE MONTHS                            SIX MONTHS
                                                          ENDED JUNE 30,                         ENDED JUNE 30,
                                                      2006              2005                 2006             2005
						 -------------	   -------------	--------------	  ------------

<S>							<C>		<C>			<C>	<C>

Costs and expenses:

General and administrative expenses              $	39,950     $      46,739        $	65,395    $     80,845
						 -------------	   -------------	--------------	  ------------
Operating loss                                         (39,950)          (46,739)              (65,395)        (80,845)

Interest expense                                        (7,588)           (5,204)              (14,366)        (11,161)
Interest income                                          2,993             2,993                 5,986           5,986
						 -------------	   -------------	--------------	  ------------
Loss before provision
 for income taxes                                      (44,545)          (48,950)              (73,775)        (86,020)

Provision for income taxes                                   -                 -                     -               -
						 -------------	   -------------	--------------	  ------------
Net loss                                         $     (44,545)    $     (48,950)       $      (73,775)   $    (86,020)
						 =============	   =============	==============	  ============
Basic loss per share                                         *                 *                     *               *
						 =============	   =============	==============	  ============
Basic weighted average shares outstanding           24,216,058        24,216,058            24,216,058      24,216,058
						 =============	   =============	==============	  ============

*Less than $.005 per share

                                       2
The accompanying notes are an integral part of the financial statements.

</TABLE>



<PAGE>

<TABLE>
<CAPTION>

NORTH AMERICAN GAMING AND ENTERTAINMENT
  CORPORATION
STATEMENTS OF CASH FLOWS (UNAUDITED)

								Six Months Ended June 30
                                                     		   2006           2005
								--------	--------
<S>								<C>		<C>

Cash Flows From Operating Activities:
Net loss                                          		$(73,775)       $(86,020)
Adjustments to reconcile net loss to net cash used in
   operating activities:
      Depreciation expense                               	     615              90
Changes in operating assets and liabilities:
   (Increase) decrease in:
    Interest receivable                              		  (5,986)         (5,986)
    Increase (decrease) in:
      Accounts payable and accrued liabilities        		  16,267          20,408
								--------	--------
Net Cash Used In Operating Activities               		 (62,879)        (71,508)
								--------	--------
Cash Flows From Investing Activities:
   Purchase of furniture and fixtures                  		    (642)           (539)
   Repayments on advances                                  	       -          50,000
								--------	--------
Net Cash Provided By (Used In) Investing Activities    		    (642)    	  49,461
								--------	--------
Cash Flows From Financing Activities:
   Borrowings under note payable                      		  64,494          42,500
   Payments on notes payable                         		  (3,000)        (35,000)

Net Cash Provided By Financing Activities             		  61,494           7,500

Net Decrease In Cash                                     	  (2,027)        (14,547)

Cash, beginning of period                              		   2,504          18,017
								--------	--------
Cash, end of period                              		$    477     	$  3,470
								========	========

                                       3
The accompanying notes are an integral part of the financial statements.

</TABLE>


<PAGE>
NORTH AMERICAN GAMING AND ENTERTAINMENT
  CORPORATION
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2006

1.  OPINION OF MANAGEMENT

The preceding financial information has been prepared by the  Company  pursuant
to  the rules and regulations of the Securities and Exchange Commission ("SEC")
and,  in  the  opinion  of  the  Company,  includes  all  normal  and recurring
adjustments necessary for a fair statement of the results of each period shown.
Certain information and footnote disclosures normally included in the financial
statements  prepared  in  accordance  with  U.S.  generally accepted accounting
principles  have  been  condensed  or  omitted  pursuant   to   SEC  rules  and
regulations.   The Company believes that the disclosures made are  adequate  to
make the information presented not misleading.

Results for the  six  months ended June 30, 2006 are not necessarily indicative
of the results to be realized during the full year.  These financial statements
should be read in conjunction  with  the Company's Annual Report on Form 10-KSB
for the year ended December 31, 2005.

The accompanying financial statements  have  been  prepared  assuming  that the
Company  will continue as a going concern.  However, the Company currently  has
no sources  of  revenue and its cash flow needs will soon exhaust the available
cash.  Management  plans  to continue operating the business and pursue various
business, investment and financing opportunities.

2.  NOTE RECEIVABLE

In March 2004, the Company  entered  into a loan agreement with US Daylighting,
L.L.C. (Daylighting).  Under the terms of the Note, the Company is to initially
advance up to $150,000 to Daylighting,  with  interest  due monthly at 9%.  The
Company may advance an additional $150,000 and has the option  to  convert  the
total  of all advances ($300,000) into a 25% interest in Daylighting.  Advances
under the  note  are due within six months of demand being made by the Company,
and the note is in default as of June 30, 2006.  The note is secured by various
membership interests  of  Daylighting.   As  of  June 30, 2006, the Company has
advanced $133,000 under this note, and accrued interest receivable on this note
is  $27,606  as  of  June  30,  2006.  No allowance for  doubtful  accounts  is
considered necessary, due to the  terms  of  the note payable to related party,
discussed in Note 3.

3.  NOTES PAYABLE

In May 2004, the Company issued a 12% promissory  note to an unrelated party in
the amount of $110,000, due in 90 days.  The note is  unsecured, and guaranteed
by  an  officer  of  the Company.  The note has been renewed  in  August  2004,
February 2005, and August  2005  and February 2006, and as of June 30, 2006 the
balance of the note is $96,294, and  the  note is due August 18, 2006.  At each
renewal date, the renewal amount included any outstanding principal and accrued
interest payable.

                                       4

In July 2004, the Company issued an 8% promissory  note to a related party, due
in  180 days.  The note has been renewed in January 2005,  July  2005,  January
2006  and  July  2006,  and  as  of  June  30, 2006, the balance of the note is
$218,012, and the note is due December 2006.  The note is collateralized by the
note receivable from Daylighting.  Under the terms  of the current renewal, the
related  party  lender's  sole  remedy  for  collection  is  to  foreclose  the
collateral note receivable from Daylighting and seek recovery from Daylighting.
The related party lender also agreed it had no claim against  the  Company  for
any  deficiency  in the collection, by the Company, of the note receivable from
Daylighting.  Interest  expense on the note payable to related party was $7,647
in 2006 and $1,989 in 2005.

Other notes payable in the  amount  of  $12,700  at  June  30, 2006, consist of
amounts due to former preferred stockholders of the Company.   Those notes bear
interest at 9% and were payable in 2001.  The notes are unsecured  and  are  in
default at June 30, 2006.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

LIQUIDITY AND CAPITAL RESOURCES

General:  Until  August  20,  2001, the Company was engaged in the video gaming
business through its partial ownership  of  three  operating  companies.  These
companies  operated video poker machines located in truck stops  in  Louisiana.
Effective August 20, 2001, the Company sold its interests in these companies.

General Condition.  The Company ended the quarter with $477 in cash, $27,606 in
accrued interest  receivable,  $3,152  in  property  and  equipment  (net)  and
$133,000  in note receivable.  Total liabilities were $423,854 at June 30, 2006
and consist  of  accounts  payable  and  accrued  liabilities of $81,845, notes
payable  of  $327,006 and preferred stock dividends payable  of  $15,003.   The
Company's current liabilities increased from approximately $346,000 at December
31, 2005 to approximately  $424,000  at  June  30, 2006.  This increase was due
primarily to the increase in accrued interest payable  and  additional  amounts
borrowed on notes payable.

Plan of Operations

Effective  August  20,  2001,  the  Company  sold its interests in video gaming
business for cash and notes receivable. During 2003, the Company sold the notes
receivable for cash. As a result, the Company  has  no  on-going  operations or
revenues.   The  Company's  plan  is  to  continue  exploring  for  acquisition
opportunities  and  the  financing  required  to  buy  and support an operating
business. There is no assurance that we will be able to  do so, and during 2006
we will have to continue to rely on advances from related  parties  to  pay our
basic level of operating expense.


Our  independent accountants have expressed substantial doubt about our ability
to continue as a going concern.


                                       5



RESULTS OF OPERATIONS

Comparison  of the six months ended June 30, 2006, to the six months ended June
30, 2005.

Operating Income (Expense)

The Company recorded  an  operating  loss  of  $73,775  comprised  primarily of
general  and  administrative  costs during the six Months ended June 30,  2006,
compared to an operating loss of  $86,020  also  comprised primarily of general
and administrative costs for the six months ended  June 30, 2005.  The decrease
in the loss from operations for the six months ended  June 30, 2006 as compared
to the loss from operations for the six months ended June  30,  2005  is due to
the reduction in general and administrative costs during 2006.

Interest Expense

The Company incurred interest expense of $14,366 for the six months ended  June
30,  2006,  compared  to  $11,161  for the six months ended June 30, 2005.  The
increase in interest expense is due  to  additional borrowings from related and
unrelated parties.

Interest Income and Miscellaneous Income

The Company recorded interest income of $5,986  for  the  six months ended June
30, 2006, related to interest income on the convertible secured promissory note
with U.S. Daylighting, L.L.C., compared to interest income  of  $5,986  for the
six months ended June 30, 2005.

ITEM 3.  CONTROLS AND PROCEDURES

a)   Within the 90-day period prior to the date of this report, we carried  out
   an  evaluation,  under  the  supervision  and  with the participation of our
   management,  including  the  Chief  Executive Officer  and  Chief  Financial
   Officer, of the effectiveness of the  design and operation of our disclosure
   controls and procedures pursuant to Rule  13a-14  of the Securities Exchange
   Act  of  1934  (the "Exchange Act"). Based upon that evaluation,  the  Chief
   Executive officer  and Chief Financial Officer concluded that our disclosure
   controls and procedures  are  effective  in timely alerting them to material
   information relating to the Company required  to be included in our Exchange
   Act  filings.   The  two Executive Officers responsible  for  the  financial
   reporting and disclosure  are  in direct control of the books and records of
   the Company and are involved first-hand  in  the decision making process for
   material transactions.

b)  There have been no significant changes in our internal controls or in other
   factors, which could significantly affect internal  controls  subsequent  to
   the date we carried out our evaluation.





                                       6



<PAGE>
NORTH AMERICAN GAMING AND ENTERTAINMENT
  CORPORATION
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2006

Forward Looking Statements

Certain   statements  contained  in  this  Report  on  Form  10-QSB,  including
statements  of  the  Company's  current  expectations,  intentions,  plans  and
beliefs,   and  statements  containing  the  words  "believes",  "anticipates,"
"estimates," "expects," or "may," are forward-looking statements, as defined in
Section 21D  of  the  Securities  Exchange  Act  of 1934.  Such forward-looking
statements  involve  known and unknown risk, uncertainties  and  other  factors
which may cause the actual  results, performance, timing or achievements of the
Company to be materially different  from  any  results,  performance, timing or
achievements expressed or implied by such forward-looking statements.




                                       7


<PAGE>
PART II - OTHER INFORMATION

Items 1 through 5 not applicable.

ITEM 6.    EXHIBITS

(a)   Exhibits required to be filed by Item 601 of Regulation S-B:

31.1  Certification of Chief Executive Officer and Chief Financial Officer
      Under Section 302  of the Sarbanes-Oxley Act of 2002

32.1  Certification  pursuant  to  18  U.S.C.  Section  1350,  as  adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




                                       8


                                  SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange  Act of 1934,
the  Company  has  duly  caused  this report to be signed on its behalf by  the
undersigned, thereunto duly authorized.

                                         NORTH AMERICAN GAMING AND
                                         ENTERTAINMENT CORPORATION


August 17,2006
                                        /s/ E. H. Hawes, II, President
                                        ------------------------------
                                        E. H. Hawes,  II,  President
                                        and Chief Executive Officer
                                        (Principal Executive Officer
                                        and Principal Financial and
                                        Accounting Officer)



                                       9


<PAGE>
                                                                   EXHIBIT 31.1

                                 CERTIFICATION
I, E. H. HAWES, II, CERTIFY THAT:

   1. I have reviewed this quarterly  report  on  Form 10-QSB of North American
      Gaming and Entertainment Corporation;

   2. Based on my knowledge, this quarterly report  does not contain any untrue
      statement of a material fact or omit to state a  material  fact necessary
      to  make  the statements made, in light of the circumstances under  which
      such statements  were  made,  not  misleading  with respect to the period
      covered by this quarterly report;

   3. Based  on  my knowledge, the financial statements,  and  other  financial
      information  included  in  this  quarterly  report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows  of the registrant as of, and for, the periods  presented  in  this
      quarterly report.

   4. The small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure controls and
      procedures  (as defined in Exchange Act Rules and maintaining  disclosure
      controls and  procedures  (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e) and internal control  over  financial  reporting (as defined in
      Exchange Act Rules 13a-15(f) and 15d-15(f) for the  small business issuer
      and have:

   (a)Designed  such  disclosure  controls  and  procedures,  or   caused  such
      disclosure  controls and procedures to be designed under our supervision,
      to ensure that  material  information  relating  to  the  small  business
      issuer, including its consolidated subsidiaries, is made known to  us  by
      others  within  those  entities,  particularly during the period in which
      this report is being prepared;

   (b)Designed such internal control over  financial  reporting, or caused such
      internal  control  over  financial  reporting  to be designed  under  our
      supervision, to provide reasonable assurance regarding the reliability of
      financial  reporting  and  the  preparation of financial  statements  for
      external  purposes  in  accordance  with  generally  accepted  accounting
      principles;

   (c)Evaluated  the effectiveness of the small  business  issuer's  disclosure
      controls and  procedures  and  presented  in  this report our conclusions
      about the effectiveness of the disclosure controls  and procedures, as of
      the  end of the period covered by this report based on  such  evaluation;
      and

   (d)Disclosed  in  this  report  any  change  in  the small business issuer's
      internal control over financial reporting that  occurred during the small
      business issuer's most recent fiscal quarter (the small business issuer's
      fourth  fiscal  quarter  in  the  case  of  an  annual report)  that  has
      materially  affected, or is reasonably likely to materially  affect,  the
      small business issuer's internal control over financial reporting; and

   5. The small business  issuer's  other  certifying  officer(s)  and  I  have
      disclosed,  based  on our most recent evaluation of internal control over
      financial reporting,  to  the  small  business  issuer's auditors and the
      audit  committee of the small business issuer's board  of  directors  (or
      persons performing the equivalent functions):

   (a)All significant  deficiencies  and  material  weaknesses in the design or
      operation  of  internal  control  over  financial  reporting   which  are
      reasonably likely to adversely affect the small business issuers  ability
      to record, process, summarize and report financial information; and

   (b)Any  fraud,  whether  or  not material, that involves management or other
      employees who have a significant  role  in  the  small  business issuer's
      internal control over financial reporting.

 Date:  August 17, 2006

/s/ E. H. HAWES, II,
--------------------
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

                                      10




<PAGE>


                                                                   EXHIBIT 32.1

                           CERTIFICATION PURSUANT TO
                            18 U.S.C. SECTION 1350,
                            AS ADOPTED PURSUANT TO
                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  North  American  Gaming   and
Entertainment  Corporation (the "Company") on Form 10-QSB for the period ending
June 30, 2006 as  filed with the Securities and Exchange Commission on the date
hereof (the "Report"),  I  E.  H.  Hawes  II, Chief Executive Officer and Chief
Financial Officer of the Company, certify,  pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley  Act  of 2002, that to
the best of my knowledge and belief:

      (1)    The Report fully complies with the requirements of  Section  13(a)
or 15(d) of the Securities Exchange Act of 1934; and

      (2)     The  information  contained in the Report fairly presents, in all
material respects, the financial  condition  and  result  of  operations of the
Company.

/s/ E. H. HAWES, II,
--------------------
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

August 17, 2006




                                      11