UNITED STATES
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB
(Mark One)

(X)  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF  THE  SECURITIES
     EXCHANGE ACT OF 1934

      For the quarterly period ended SEPTEMBER 30, 2000.

                                       OR

( )  TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15 (d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

      For the transition period from _______ to ________.

      Commission File Number 0-23859

                        FORTUNE ENTERTAINMENT CORPORATION

             Delaware                                      88-0405437
      -------------------------                          ---------------
      State or other jurisdiction                       (I.R.S.)Employer
      of incorporation                                  Identification No.

                        Fortune Entertainment Corporation
                            333 Orville Wright Court
                               Las Vegas, NV 89119
                     Address of principal executive offices

                                 (702) 614-6124
                 ------------------------------ ---------------
               Registrant's telephone number, including area code

                                 144 Elm Street
                               2nd Floor, Suite 16
                             Biddeford, Maine 04005
                  Former address of principal executive offices

Indicate by check mark whether the Registrant (1) has files all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  Registrant
was  required  to file such  reports)  and (2) had been  subject to such  filing
requirements for the past 90 days.

            Yes             X                   No    ________
                  ------------------

      As of September 30, 2000 the Company had 25,829,280  outstanding shares of
common stock.



<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                        (A development stage enterprise)

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                  ASSETS
                                              September 30,     December 31,
                                                  2000             1999
                                                  ----             ----
Current:
   Cash                                         $  1,189         $  22,397
   Prepaid expenses and other current                                2,635
    assets                                    -------------------------------

     Total current assets                          1,189           25,032

Deposits                                           9,879            9,879
Investments - at cost                            600,000        1,356,658
Loans receivable                                 711,469                -
Property and equipment - net                      59,773           73,146
Goodwill - net                                   431,736          477,636
Intellectual property - net                    4,473,288        4,933,789
                                             -----------      -----------
     Total assets                           $  6,287,334     $  6,876,140
                                             ===========      ===========

 LIABILITIES AND SHAREHOLDERS' EQUITY

Current:
   Accounts payable and accrued
     liabilities                              $  276,882    $     385,134
   Due to related parties                        720,580        1,072,491
   Loans payable                                  50,000          370,000
   Purchase consideration payable -              335,000          405,000
                                            ------------     ------------
current position

     Total current liabilities                 1,382,462        2,232,625
                                             -----------     ------------

Stockholders' Equity:
   Share stock
     Common stock, $0.0001 par value,
      30,000,000 authorized, 25,829,280
      issued and outstanding                       2,583            1,810
     Preferred stock, $0.0001 par value,
       convertible
       Class A, B and C Preferred stock:
       1,100,000 authorized, 31,714,
       31,714 and 35,714 issued and
       outstanding,                                   10               10
   Additional paid in capital                 12,174,072       10,795,642
   Share stock to be issued                      160,000          138,703
   Stock based compensation                      465,000          465,000
   Accumulated deficit                        (7,896,793)      (6,757,650)
                                              ----------       ----------

     Total stockholders' equity                4,904,872        4,643,515
                                             -----------      -----------

     Total liabilities and stockholders'    $  6,287,334     $  6,876,140
      equity                                 ===========      ===========


See accompanying notes


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                        (A development stage enterprise)

            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & DEFICIT
                              FOR THE PERIODS ENDED
                                   (Unaudited)


                                        Three Months             Nine Months
                                           Ended                   Ended
                                        September 30,           September 30,
                                      2000        1999        2000        1999
Expenses:
   Amortization of intangible
     assets                        $ 168,800    $168,800   $ 506,400  $ 506,400
   Depreciation                        4,457          --      13,373         --
   Bank charges and interest          24,065       5,018      73,774     31,782
   Consulting fees                    22,366      75,754     242,357    207,790
   General and administration         23,896      76,114      62,554    153,296
   Legal and accounting               45,233      60,971     190,222    332,347
   Management fees                    99,298      31,250     119,298     93,750
   Office and miscellaneous           10,625          --      32,646     38,985
   Rent                                7,952          --      28,087     27,649
   Salaries and wages                     --      28,790          --     86,390
   Contracted services                 3,146          --      38,352         --
   Travel, promotion and
     entertainment                         -       3,362      25,605     41,089
                                       -----       -----      ------     ------

     Operating loss for period       409,838     450,059   1,332,668  1,519,478
                                     -------     -------   ---------  ---------

Other (income) expense:
   Gain on sale of investments            --          --    (154,430)        --
   Interest income
                                     (24,089)         --     (39,095)        --
                                     --------    -------     -------- ---------

     Total other (income) expense
                                     (24,089)         --    (193,525)        --
                                     -------     -------    --------  ---------

     Loss for the period             385,749     450,059   1,139,143  1,519,478

Deficit, beginning of period       7,511,044   5,833,742   6,757,650  4,764,323
                                   ---------  ----------   ---------  ----------

Deficit, end of period           $ 7,896,793  $6,283,801  $7,896,793 $6,283,801
                                   =========   =========   =========  =========

Basic and diluted loss per share        (.01)       (.03)       (.05)      (.10)
                                        =====       =====       =====      =====

Weighted average common shares
  outstanding                      25,928,422  15,298,313  23,351,015 15,298,313
                                   ==========  ==========  ========== ==========


See accompanying notes


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                        (A development stage enterprise)

             CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the
                         nine months ended September 30
                                   (Unaudited)


                                                     2000            1999
                                                     ----            ----
Operating activities:
   Net loss for period                           $(1,139,143)     $(1,519,478)
   Adjustments to reconcile net loss to net
    cash used in operating activities:
     Gain on sale of investments                    (154,430)               -
     Amortization of intangible assets               506,400          506,400
     Depreciation                                     13,373                -
     Shares issued for services rendered              82,000           33,700
     Changes in operating assets and
      liabilities:
       Accounts receivable                             2,635          (13,362)
      Accounts payable and accrued liabilities      (108,251)         101,224
                                                  ----------       ----------

   Net cash used in operating activities            (797,416)        (891,516)
                                                  ----------       ----------

Investing activities:
   Acquisition of equipment                               --           (6,038)
   Proceeds from sale of investments               1,511,088               --
   Purchase price consideration payments             (70,000)        (282,500)
   Loan advances                                    (923,000)              --
   Loan repayments
                                                     211,531               --
                                                  ----------               --

   Net cash provided (used) by investing
    activities                                       729,619         (288,538)
                                                  ----------        ---------

Financing activities:
   Loans payable                                    (320,000)         (84,017)
   Advances from (payments to) related parties      (351,911)          92,050
   Proceeds from capital contributions               718,500          830,000
                                                  ----------       ----------

   Net cash provided by financing activities          46,589          838,033
                                                 -----------       ----------

Net increase (decrease) in cash during the
  period                                             (21,208)        (342,021)
Cash at beginning of period                           22,397          353,543
                                                 -----------       ----------

Cash at end of period                          $       1,189     $     11,522
                                                ============      ===========



See accompanying notes




<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

1. INTERIM REPORTING

      The  accompanying  unaudited  condensed  financial  statements  have  been
prepared in accordance with generally  accepted  accounting  principles and Form
10-QSB requirements. Accordingly, they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.  In the opinion of management,  all adjustments considered
necessary for a fair presentation have been included.  Operating results for the
nine months  ended  September  30, 2000 are not  necessarily  indicative  of the
results that may be expected for the year ended  December 31, 2000.  For further
information, refer to the financial statements and related footnotes included in
the Company's annual report on Form 10-KSB for the year ended December 31, 1999.

2. PRINCIPLES OF CONSOLIDATION

      The condensed  consolidated  financial  statements include the accounts of
the Company and its wholly-owned subsidiaries, Fortune Entertainment Corporation
(Bahamas),  Fortune  Entertainment  Corporation (British Columbia,  Canada), and
Fortune  Poker Inc.  (Delaware).  All  significant  inter-company  accounts  and
transactions have been eliminated.

3. BUSINESS

       The  Company is engaged in the  acquisition,  design and  development  of
selected gaming  products,  which the company intends to sell, lease and license
in the United States and international gaming markets.

      As of November 15, 2000 the  Company's two products were the Fortune Poker
System,  a  progressive  multi-player  draw poker  video game and the Rainbow 21
casino blackjack game.



<PAGE>


                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                              AND PLAN OF OPERATION

      The following should be read in conjunction with  Management's  Discussion
and Analysis of Financial  Condition  and Results of Operations in the Company's
annual report on Form 10-KSB for the year ended December 31, 1999.

      This report contains forward-looking  statements within the meaning of the
Securities  Act of  1933  and of  the  Securities  Exchange  Act of  1934.  Such
statements  include,  but are not limited to projected sales, market acceptance,
and the  availability  of capital..  Forward-looking  statements  are inherently
subject  to risks and  uncertainties,  many of which  cannot be  predicted  with
accuracy and some of which may not even be anticipated. Future events and actual
results,  financial and otherwise,  could differ materially from those set forth
in or contemplated by the forward-looking statements.

      The  Company's  products are in the early stage of  commercialization  and
regulatory  approval.  The  Company  is still in the  development  stage  and is
expected  to incur  substantial  future  losses.  The  Company has not, to date,
generated  any  revenues  from its  operations.  The  ability of the  Company to
generate  revenues  and  positive  cash flow will  depend  on  several  factors,
including  the timing and costs in  obtaining  gaming  licenses  and  concluding
agreements  with Indian  Tribal  Casinos  with respect to the  Company's  gaming
products.

      During the period ending December 31, 2000 the Company plans to market its
Fortune  Poker and  electronic  Bingo games to Indian  Tribes  holding Class III
casino licenses in Minnesota.  During the year 2000 the Company plans to license
the rights to its  Rainbow  21 game to third  parties  who will then  attempt to
market the Rainbow 21 game to casino operators.

      In order to market its Fortune 21 and electronic  Bingo games,  the Gaming
Laboratories  International  will need to  complete  its  testing of the Fortune
Poker game. The Company does not know when this testing will be completed.

      Following the completion of the testing of the Company's Fortune Poker and
electronic  Bingo  games  the  Company  will  apply  for a gaming  license  from
Minnesota.  While the Company's application is being reviewed,  the Company will
begin  negotiations  with Indian Tribal  Casinos in Minnesota with a view to the
Tribal  Casino's  purchase  or  lease  of the  Company's  Fortune  Poker  and/or
electronic  Bingo  games.  It will be the  Company's  objective  to  conclude an
arrangement  whereby the Company will  receive a percentage  of the net revenues
derived  from the  operation  of the games.  The  percentage  which the  Company
expects to receive  will vary  (typically  between  9% and 23%)  depending  upon
whether  the games are  purchased  or leased  from the  Company  and whether the
Company or the particular Tribal Casino operates the games.

    If the Company is successful in obtaining a gaming license in Minnesota, the
Company  plans to apply for gaming  licenses in other states (with the exception
of Nevada and states  that do not have Class III Indian  Tribal  casinos)  which
have tribal casinos with Class III gaming licenses.

<PAGE>


However,  before  applying  for a gaming  license  in any of these  states,  the
Company must first obtain the  sponsorship  of an Indian tribe which  operates a
casino in the state.

      No assurances,  however,  can be given that the Company will be successful
in obtaining any required  licenses,  permits or approvals,  or in obtaining the
sponsorship  of  any  Indian  tribe  operating  casinos  in  states  other  than
Minnesota.

      Since  inception  the  Company  has  funded  its  operations  and  capital
expenditures primarily through private placements of debt and equity securities.
The  Company  needs  additional  financing  on an  ongoing  basis to  remain  in
operation.  There can be no assurance  that such  financing  will continue to be
available at all, or on terms acceptable to the Company.

                                     PART II
                                OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits

      No.                                 Description

      27                                  Financial Data Schedule

(b)   Reports on Form 8-K

      The Company  did not file any reports on Form 8-K during the three  months
      ending September 30, 2000.




<PAGE>


                                   SIGNATURES


      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                              Fortune Entertainment Corporation



Date:  November 21, 2000      By:   /s/ Douglas Sanderson
                                  --------------------------------------------
                                        Douglas Sanderson,
                                        President and Chief Financial Officer