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, 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                                           88-04053347
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 August 15,  2000 the Company had  25,829,280  outstanding  shares of
common stock.

<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                       (A developmental stage enterprise)

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                         ASSETS                      June 30,      December 31
                                                      2000            1999
                                                      ----            ----
        Current:
          Cash                                    $  30,765         $22,397
          Prepaid expenses and other
              current assets                             --           2,635
                                                   -----------        -----
            Total current assets                     30,765          25,032
        Deposits                                      9,879           9,879
        Investments - at cost                       600,000       1,356,658
        Loans receivab1e                            923,000              --
        Property and equipment - net                 64,231          73,146
        Goodwill-net                                447,036         477,636
        Intellectual property - net               4,626,789       4,933,789
                                                  ---------       ---------

            Total assets                         $6,701,700      $6,876,140
                                                 ==========      ==========

           LIABILITIES AND SHAREHOLDERS' EQUITY

        Current:
          Accounts payable and accrued
               liabilities                         $235,499        $385,134
          Due to related parties                    720,580       1,072,491
          Loans payable                              50,000         370,000
          Purchase consideration payable -
               current position                     405,000         405,000
                                                  ----------        -------

            Total current liabilities             1,411,079       2,232,625
                                                   ---------      ---------

 Stockholders' Equity:
     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                   (7,511,044)      (6,757,650)
                                                -----------     -----------
       Total stockholders' equity                5,290,621        4,643,515
                                                 ---------        ---------
       Total liabilities and stockholders'
          equity                                $6,701,700       $6,876,140
                                                ==========        ==========


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


<PAGE>


                        FORTUNE ENTERTAINMENT CORPORATION
                       (A developmental stage enterprise)

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & DEFICIT
                                   (Unaudited)

                                           Three Months            Six Months
                                           Ended June 30         Ended June 30
                                           -------------         -------------
                                         2000      1999       2000       1999
                                         ----      ----       ----       ----
Expenses:
      Amortization of intangible
          assets                     $168,800    168,800   $337,600   $337,600
      Depreciation                      4,458          -      8,916          -
      Bank charges and interest        23,712     13,534     49,709     26,764
      Consulting fees                 169,382     35,541    219,991    132,036
      General and administration        3,754     72,956     38,658     77,182
      Legal and accounting            104,497    159,400    144,989    271,376
      Management fees                       -          -     20,000     62,500
      Office and miscellaneous            995     18,500     22,021     38,985
      Rent                              8,494     12,000     20,135     27,649
      Salaries and wages                    -     23,290          -     57,600
      Contracted services              14,740          -     35,206          -
      Travel, promotion and
          entertainment                16,894     25,013     25,605     37,727
                                         ------   ------     ------     ------

      Operating loss for period       515,726    529,034    922,830  1,069,419
                                      -------    -------    -------  ---------

Other (income) expense:
      Gain on sale of investments    (154,430)         -   (154,430)         -
      Interest income                 (15,006)         -    (15,006)         -
                                      -------   --------    -------   --------

      Total other (income) expense   (169,436)         -   (169,436)         -
                                     --------   --------   --------   --------

      Loss for the period             346,290    529,034    753,394  1,069,419

      Deficit, beginning of period  7,164,754  5,304,708  6,757,650  4,764,323
                                    ---------  ---------  ---------  ---------

      Deficit, end of period       $7,511,044 $5,833,742 $7,511,044 $5,833,742
                                   ========== ========== ========== ==========

      Basic and diluted loss
            per share                   (0.01)     (0.04)    (0.03)      (0.07)
                                     ==========================================


      Weighted average common
          shares outstanding       22,630,815  15,100,813  22,062,315 15,100,813
                                   ==========  ==========  ========== ==========




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

<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
six months  ended June 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 August 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  competition  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. 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.

<PAGE>


      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.




<PAGE>


                                     PART II
                                OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits
      No exhibits are filed with this report

(b)   Reports on Form 8-K
      The Company  did not file any reports on Form 8-K during the three  months
ending June 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:  August 21, 2000        By:
                                 Douglas Sanderson,
                                 President and Chief Executive Officer