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 JUNE 30, 2001.

                                       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

                                       N/A
                  Former address of principal executive offices

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

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

As of June 30,  2001 the  Company had  27,302,043  outstanding  shares of common
stock.


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                              (A development stage enterprise)
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

                                         June 30, 2001        December 31, 2000
ASSETS
Current assets
   Cash                                   $   4,027                $  2,401
   Due from related party                   170,000                 170,000
   Prepaid expenses and other current
    assets                                       -0-                  5,544
                                            -------------         ---------
Total current assets                        174,027                 177,945

Deposits                                      5,642                   5,641
Investments - at cost                       600,000                 600,001
Note receivable - related party             446,437                 507,042
Property and equipment - net                 51,696                  57,696
Goodwill - net                              385,836                 416,436
Intellectual property - net               4,002,063               4,308,414
                                          ---------             -----------

TOTAL ASSETS                             $5,665,701              $6,073,175
                                         ==========              ==========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued liabilities    687,953           $     543,305
Due to related parties                      250,000                 916,025
Loans payable                               340,000                 300,000
                                         ----------             -----------
Total current liabilities                 1,277,953               1,759,330
                                          ---------               ---------

Total liabilities                         1,277,953               1,759,330

SHAREHOLDERS' EQUITY
Common stock, $ 0.0001 par value,
 30,000,000 authorized, 27,302,043
 and 25,969,993 shares issued and
 outstanding, respectively                    2,730                   2,597

Preferred stock $0.0001 par value,
 convertible Class A, B and C
 Preferred stock; 5,000,000 shares
 authorized, 28,143; 28,143; 32,143
 shares issued and outstanding                    9                       9

Additional paid in capital               12,809,823              12,143,931
Shares to be issued                         197,000                 197,000
Stock Based Compensation                    465,000                 465,000
Accumulated deficit                      (9,086,814)             (8,494,692)
                                         -----------             -----------

Total shareholders' equity                4,387,748               4,313,845
                                          ---------              ----------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                     $5,665,701             $ 6,073,175
                                         ==========             ===========

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


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                        (A development stage enterprise)
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & DEFICIT
                                   (UNAUDITED)



                                         Three Months          Six Months
                                         Ended June 30        Ended June 30
                                         -------------        -------------
                                       2001       2000      2001         2000
                                       ----       ----      ----         ----
EXPENSES
 Amortization of intangible assets  $168,475   168,800   $ 336,950     337,600
   Depreciation                        3,000     4,458       6,000       8,916
   Bank charges and interest             147    23,712       7,373      49,709
   Salaries and consulting fees       76,850   169,382     146,900     219,991
   General and administration             --     3,754          --      38,658
   Legal and accounting               25,437   104,497      50,937     144,989
   Management fees                    22,500        --      45,000      20,000
   Office and miscellaneous            1,832       995      20,888      22,021
   Rent                                   --     8,494          --      20,135
   Contracted services                    --    14,740          --      35,206
   Travel promotion and entertainment  1,865    16,894       2,669      25,605
                                      ------    ------      ------      ------
   Total expenses                    300,106   515,726     616,717     922,830

Other (income) expense:
   Gain on sale of investment             --  (154,430)         --    (154,430)
   Interest income                   (12,001)  (15,006)    (24,595)    (15,006)
                                    ---------  --------    --------    --------
   Total other (income) expense      (12,001) (169,436)    (24,595)    (169,436)

Loss for the period                  288,105   346,290     592,122     753,394


Deficit, beginning of period       8,798,709 7,164,754   8,494,692   6,757,650
                                    -------- ---------   ---------   ---------

Deficit, end of period         $  9,086,814 $7,511,044  $9,086,814 $ 7,511,044
                               ============ ==========  ==========  ==========

Basic and diluted loss
per share                             (0.01)    ( 0.01)      (0.02)      (0.03)
                               ============ ==========  =========== ===========
Weighted average common shares
Outstanding                      27,390,472  22,630,815 26,724,447  22,062,315
                               =================================================



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


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                        (A development stage enterprise)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                        FOR THE SIX MONTHS ENDED JUNE 30
                                   (UNAUDITED)

                                                    2001             2000
                                                   -----             ----

CASH FLOW FROM OPERATING ACTIVITIES:
Net loss for the period                         $ (592,122)      $ (753,394)
Adjustments to reconcile net loss to net cash
   used in operating activities:

Gain on sale of investments                             --        (154,430)
Amortization of intangible assets                  336,950         337,600
Depreciation                                         6,000           8,916
Shares issued for services rendered                     -0-         82,000
Changes in operating assets and liabilities:
   Accounts receivable                                  -0-          2,635
   Prepaid expenses                                  5,544              -0-
   Accounts payable and accrued liabilities        144,648        (149,636)
                                                   -------        ---------

Net cash used in operating activities              (98,980)       (626,309)
                                                   --------       ---------

INVESTING ACTIVITIES:
Proceeds from sale of investments                       --       1,511,088
Receipts (advances) on loans, net                   60,606        (923,000)
                                                   -------       ---------

Net cash provided by investing activities           60,606         588,088
                                                   -------       ---------

FINANCING ACTIVITIES:
Loans from (repayments to) unrelated parties        40,000        (320,000)
Payments to related parties                             --        (351,911)
Proceeds from capital contributions                     --         718,500
                                             -------------         -------

Net cash provided by financing activities           40,000          46,589
                                                  --------          ------

NET INCREASE (DECREASE) IN CASH
DURING PERIOD                                        1,626           8,368

CASH AT BEGINNING OF PERIOD                          2,401          22,397
                                                   -------         -------

CASH AT END OF PERIOD                              $ 4,027      $   30,765
                                                   =======       =========

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

<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001

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
six months  ended June 30, 2001 are not  necessarily  indicative  of the results
that  may be  expected  for the  year  ended  December  31,  2001.  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, 2000.

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.

                      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, 2000.

     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 has not, to date,  generated any revenues from its  operations.
Accordingly, the Company has, since inception, funded its operations and capital
expenditures primarily through private placements of debt and equity securities.

     During the period ending  December 31, 2001 the Company plans to form joint
ventures with third parties for the purpose of owning and operating casino games
in Peru and the  Philippines.  As of August 13, 2001 the Company had not entered

<PAGE>


into any joint ventures or binding  agreements with any third parties  regarding
owning or operating casino games in these  countries.  No assurance can be given
that the Company will be successful in its plans to own and operate casino games
in Peru or the Philippines.

     During the period ending December 31, 2001 the Company plans to license the
right to its Fortune  Poker and Rainbow 21 games to third  parties who will then
attempt to market these games to casino  operators.  However the Company may not
be successful in licensing the rights to either of these games.

     During the twelve months ending December 31, 2001, the Company  anticipates
that it will need capital for the following purposes:

      Fund operating losses:                        $550,000

      Capital required for joint ventures in Peru
          and Philippines                          3,000,000

      Payment of accounts payable                    400,000

      Other                                           50,000
                                                  ----------

                                                  $4,000,000

     As of August 13,  2001 the Company  did not have any  commitments  from any
source to provide  capital  and the  Company did not have any lines of credit or
other available  financing.  There is no assurance that the Company will be able
to obtain  the  capital  it will  need or that the  Company's  estimates  of its
capital requirements will prove to be accurate.

     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.




<PAGE>


                                     PART II
                                OTHER INFORMATION


Item 2.  Changes in Securities and Use of Proceeds

     During the six months  ended June 30,  2001 the  Company  issued  1,332,050
shares of its common stock to four persons who were formerly affiliated with the
Company in settlement of $666,025 owed to these persons as of December 31, 2000.
The  Company  relied  upon  the  exemption  provided  by  Section  4 (2)  of the
Securities Act of 1933 in connection with the issuance of these shares of common
stock. The 1,332,050 shares described above are "Restricted  Securities" as that
term is defined in Rule 144 of the Securities and Exchange Commission.

Item 6.  Exhibits and Reports on Form 8-K

      No exhibits are filed with this report

     During  the  quarter  ending  June 30,  2001 the  Company  did not file any
reports on Form 8-K.




<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:  August 14, 2001      By    /s/ Douglas R. Sanderson
                                 ------------------------------------------
                                 Douglas R. Sanderson
                                 Chief Executive Officer and Principal
                                 Financial Officer