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: September 30, 2006

|_|   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                         Commission file number000-25853

                           Electronic Game Card, Inc.


        (Exact name of small business issuer as specified in its charter)




            Nevada                                         87-0570975
--------------------------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or organization)

                 19th Floor, 712 5th Avenue, New York, NY 10019
                    (Address of Principal Executive Offices)

                                 (646) 723-8946
                           (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. Yes [X] No [ ]

Traditional small business disclosure format    Yes [X]  No [ ]

State the number of shares outstanding of each of the issuer's classes of common
     equity, as of the latest practical date : October 31 , 2006 26,846,799


<PAGE>


                                     PART I

                            ELECTRONIC GAME CARD, INC
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        September 30,   December 31,
                                                                            2006            2005
                                                                        ------------    ------------
<S>                                                                     <C>             <C>
                                     ASSETS
CURRENT ASSETS
   Cash and cash equivalents                                            $  3,494,971    $  5,544,332
   Accounts receivable                                                       299,811         100,250
   Deposit on inventory                                                       25,480          66,939
   Value Added Tax receivable                                                 22,796          33,715
   Deferred charges                                                          690,354       1,732,203
   Related party receivable                                                    3,118            --
                                                                        ------------    ------------
Total Current Assets                                                       4,536,530       7,477,438
                                                                        ------------    ------------

PROPERTY AND EQUIPMENT
   Plant and machinery                                                        74,456          22,474
   Office equipment                                                           62,563          60,302
   Furniture and fixtures                                                      1,315           1,166
   Less Accumulated depreciation                                             (62,663)        (45,883)
                                                                        ------------    ------------
Total Property and Equipment, Net                                             75,671          38,059
                                                                        ------------    ------------

OTHER ASSETS
   Investment in joint venture                                               148,786         148,786
   Investments                                                               438,754          88,754
                                                                        ------------    ------------
TOTAL ASSETS                                                            $  5,199,741    $  7,753,038
                                                                        ============    ============

                 LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)
CURRENT LIABILITIES
   Accounts payable                                                     $    407,597    $    560,604
   Accrued liabilities                                                     1,210,351         430,411
   Related party payable                                                        --           106,944
                                                                        ------------    ------------
Total Current Liabilities                                                  1,617,948       1,097,959
                                                                        ------------    ------------

NON-CURRENT LIABILITIES
   Convertible notes payable                                               6,958,915       4,309,990
   Interest payable                                                          788,606         398,637
                                                                        ------------    ------------
Total Non-Current Liabilities                                              7,747,521       4,708,627
                                                                                        ------------
Total Liabilities                                                          9,365,469       5,806,586
                                                                        ------------    ------------

STOCKHOLDERS' EQUITY/(DEFICIT)
   Common stock, par value $0.001, 100,000,000 shares authorized,
   26,846,799 shares issued and outstanding as of September 30, 2006,
   26,131,513 shares issued and outstanding as of December 31, 2005           26,847          26,132
   Additional paid-in capital                                             21,639,814      21,640,514
   Accumulated deficit                                                   (25,104,197)    (19,207,016)
   Accumulated other comprehensive loss                                     (728,192)       (513,178)
                                                                        ------------    ------------
Total Stockholders' Equity/(Deficit)                                      (4,165,728)      1,946,452
                                                                        ------------    ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)                    $  5,199,741    $  7,753,038
                                                                        ============    ============
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>


                            ELECTRONIC GAME CARD, INC
                      Consolidated Statements of Operations
                                   (Unaudited)



<TABLE>
<CAPTION>
                                                    For the Three Months            For the Nine Months
                                                        September 30,                  September 30,
                                                     2006           2005            2006            2005
<S>                                             <C>             <C>             <C>             <C>
Revenue                                         $    331,522    $       --      $    684,839    $    232,875
Cost of sales                                        228,200            --           519,856         191,673
Gross Profit                                         103,322            --           164,983          41,202

Operating expenses
   Sales and marketing                                38,627         270,159          88,668         284,610
   General and administrative                        176,502         284,092         525,736         786,528
   Consulting expenses                               138,820         367,815         455,543         690,918
   Salaries and wages                                116,035         166,722         436,669         592,067
Total operating expenses                             469,984       1,088,788       1,506,616       2,354,123


Net operating loss from operations                  (366,662)     (1,088,788)     (1,341,633)     (2,312,921)

Other income (expenses)
   Late registration fee                            (259,980)           --          (779,940)           --
   Interest expense, net                          (1,307,453)           (801)     (3,775,608)       (424,263)
Net loss before tax                               (1,934,095)     (1,089,589)     (5,897,181)     (2,737,184)


Income tax                                              --            (1,871)           --              --
NET LOSS                                        $ (1,934,095)   $ (1,091,460)   $ (5,897,181)   $ (2,737,184)


Net Loss Per Common Share - Basic and Diluted   $      (0.07)   $      (0.04)   $      (0.24)   $      (0.11)

Weighted Average Number of Shares Outstanding   $ 26,846,799    $ 25,958,968    $ 25,765,765    $ 24,955,613
</TABLE>

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



                                       2
<PAGE>


                                                     For the Nine Months Ended
                                                    September 30, September 30,
                                                       2006           2005
                                                    -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES :

Net Loss                                            $(5,897,181)   $(2,737,184)

Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Depreciation                                             16,780         15,640
Amortization of interest expense                      1,464,312        188,518
Amortization of deferred charges                      1,041,849           --
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable             (199,561)      (120,488)
(Increase) decrease in deposit on inventory              41,459       (351,382)
(Increase) decrease in value added tax receivable        10,919         14,562
Increase (decrease) in accounts payable                (153,007)      (164,474)
Increase (decrease) in related party payable           (106,944)          --
Increase (decrease) in accrued liabilities              779,940        (41,087)
Increase (decrease) in interest payable                 389,969        272,385
Increase (decrease) in unearned revenue                    --          193,275
                                                    -----------    -----------
  Net cash used in operating activities              (2,611,465)    (2,730,235)
                                                    -----------    -----------




                                       3
<PAGE>


(Continued)


                                                    For the Nine Months Ended
                                                   September 30,   September 30,
                                                        2006           2005
                                                    -----------    -----------


CASH FLOWS FROM INVESTING ACTIVITIES :
Purchases of property and equipment                     (54,392)       (18,606)
Investment in joint venture                                --            5,940
Investments made                                       (350,000)          --
                                                    -----------    -----------
Net cash used in investing activities                  (404,392)       (12,666)
                                                    -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Advances to related party                                (3,118)      (181,785)
Payments from related party                                --          239,616
Proceeds from issuance of convertible notes payable     754,600      7,911,400
Proceeds from issuance of common stock                     --          437,116
                                                    -----------    -----------
   Net cash provided by financing activities            751,482      8,406,347

                                                    -----------    -----------

Foreign exchange effect on cash                         215,014         22,799
                                                    -----------    -----------

Net (Decrease) Increase in Cash                      (2,049,361)     5,686,245

Cash at Beginning of Period                           5,544,332      1,082,558
                                                    -----------    -----------
Cash at End of Period                               $ 3,494,971    $ 6,768,803
                                                    ===========    ===========

Supplemental Disclosure Of Cash Flow Information
Cash paid during the period for:

Interest                                            $      --      $      --
                                                    ===========    ===========
Income Taxes                                        $      --      $      --
                                                    ===========    ===========

The accompanying notes are an integral part of these financial statements



                                       4
<PAGE>


                           ELECTRONIC GAME CARD, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Business

The Company was incorporated under the laws of the United Kingdom on April 6,
2000, under the name of Electronic Game Card, Ltd. Until 2002, the Company
remained dormant and had no operations until August 8 2002. On May 5, 2003, the
Company entered into an agreement whereby it acquired 100% of the outstanding
stock of Electronic Game Card Marketing, a Delaware Company.

On December 5, 2003, the Company acquired 100% of the outstanding stock of the
Electronic Game Card, Inc. (Nevada) in a reverse acquisition. At this time, a
new reporting entity was created and the name of the Company was changed to
Electronic Game Card, Inc.

The Company engages in the development, marketing, sale and distribution of
recreational electronic software which primarily targeted towards lottery and
sales promotion markets through its Great Britain subsidiary.

Basis of Presentation

The unaudited consolidated financial statements included herein have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three and nine month periods ended
September 30, 2006 and 2005 are not necessarily indicative of the results that
may be expected for any interim period or the entire year. For further
information, these consolidated financial statements and the related notes
should be read in conjunction with the Company's audited financial statements
for the year ended December 31, 2005 included in the Company's annual report on
Form 10-KSB.

Going Concern

The accompanying financial statements have been prepared on the basis of
accounting principles applicable to a "going concern", which assume that the
Company will continue in operation for at least one year and will be able to
realize its assets and discharge its liabilities in the normal course of
operations.

Several conditions and events cast doubt about the Company's ability to continue
as a "going concern". The Company has incurred net losses of approximately
$22,950,969 for the period from August 8, 2000 (inception) to September 30,
2006. The Company's future capital requirements will depend on numerous factors
including, but not limited to, additional debt and equity financings, continued
progress in developing its products, market penetration and profitable
operations from sale of its electronic game cards.

These financial statements do not reflect adjustments that would be necessary if
the Company were unable to continue as a "going concern". While management
believes that the actions already taken or planned will mitigate the adverse
conditions and events which raise doubt about the validity of the "going
concern" assumption used in preparing these financial statements, there can be
no assurance that these actions will be successful.

If the Company were unable to continue as a "going concern", then substantial
adjustments would be necessary to the carrying values of assets, the reported
amounts of its liabilities, the reported expenses, and the balance sheet
classifications used.



                                       5
<PAGE>

Principles of Consolidation

The consolidated financial statements include the accounts of the following
companies:

o        Electronic Game Card, Inc. ( Nevada Corporation)
o        Electronic Game Card, Ltd. (United Kingdom Corporation)
o        Electronic Game Card Marketing (A Delaware Corporation)

All significant intercompany accounts and transactions have been eliminated.



                                       6
<PAGE>


                           ELECTRONIC GAME CARD, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (Continued)
                                   (Unaudited)


NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Concentration of Credit Risk

The Company has no significant off-balance-sheet concentrations of credit risk
such as foreign exchange contracts, options contracts or other foreign hedging
arrangements.

Cash
The Company maintains cash balances at financial institutions that are insured
by the Federal Deposit Insurance Corporation ("FDIC") up to$100,000. At
September 30, 2006, the Company did not have any balances in these accounts in
excess of the FDIC insurance limits. For banks outside of the United States, the
Company maintains its cash accounts at credit worthy financial institutions.


Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents to the extent the funds are not being held for investment
purposes.

Depreciation

Fixed assets are stated at cost. Depreciation is calculated on a straight-line
basis over the estimated useful lives of the assets as follows:

                        Asset                              Rate
   ------------------------------------------------ -------------------

   Plant and machinery equipment                         3 years
   Office equipment and furniture                        3 years

Maintenance and repairs are charged to operations; betterments are capitalized.
The cost of property sold or otherwise disposed of and the accumulated
depreciation thereon are eliminated from the property and related accumulated
depreciation accounts, and any resulting gain or loss is credited or charged to
the statements of operations.



                                       7
<PAGE>


                           ELECTRONIC GAME CARD, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (Continued)
                                   (Unaudited)


NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)


Advertising Costs

Advertising costs are expensed as incurred. For the three months ended September
30, 2006 and 2005, advertising costs were $1,727 and $13,018, respectively and
for the nine months to September 30 2006 and 2005 were $39,420 and $45,280
respectively.

Revenue recognition

Revenue from product sales, net of estimated provisions, will be recognized when
the merchandise is shipped to an unrelated third party, as provided in Staff
Accounting: Bulletin No. 104, "Revenue Recognition in Financial Statements"
(SAB104"). Accordingly, revenue is recognized when all four of the following
criteria are met:

       o     persuasive evidence that an arrangement exists;

       o     delivery of the products has occurred;

       o     the selling price is both fixed and determinable;

       o     collectibility is reasonably probable.

Foreign Currency Translation

The Company's primary functional currencies are the United States Dollar (USD)
and the Great Britain Pound (GBP). Assets and liabilities are translated using
the exchange rates in effect at the balance sheet date. Expenses are translated
at the average exchange rates in effect during the period. Translation gains and
losses not reflected in earnings are reported in accumulated other comprehensive
income/loss in stockholders' equity.

Pervasiveness of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles require management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Loss per Share

Basic loss per share has been computed by dividing the loss for the year
applicable to the common stockholders by the weighted average number of common
shares outstanding during the years. As of September 30, 2006, the Company had
options and warrants outstanding to purchase up to shares of common stock.
However, the effect of the Company's common stock equivalents would be
anti-dilutive for September 30, 2006 and 2005 and are thus not considered.



                                       8
<PAGE>

Stock Compensation for Non-Employees

The Company accounts for the fair value of its stock compensation grants for
non-employees in accordance with FASB Statement 123. The fair value of each
grant is equal to the market price of the Company's stock on the date of grant
if an active market exists or at a value determined in an arms length
negotiation between the Company and the non-employee.

Fair Value of Financial Instruments

The Company's financial instruments include cash equivalents and accounts
payable. Because of the short-term nature of these instruments, their fair value
approximates their recorded value. The Company does not have material financial
instruments with off-balance sheet risk.

Recent Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Statement No. 158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans--an amendment of FASB Statements No. 87, 88, 106, and
132(R)." This Statement improves financial reporting by requiring an employer to
recognize the over funded or under funded status of a defined benefit
postretirement plan (other than a multiemployer plan) as an asset or liability
in its statement of financial position and to recognize changes in that funded
status in the year in which the changes occur through comprehensive income of a
business entity or changes in unrestricted net assets of a not-for-profit
organization. This Statement also improves financial reporting by requiring an
employer to measure the funded status of a plan as of the date of its year-end
statement of financial position, with limited exceptions. An employer with
publicly traded equity securities is required to initially recognize the funded
status of a defined benefit postretirement plan and to provide the required
disclosures as of the end of the fiscal year ending after December 15, 2006. We
do not expect the adoption of FAS 158 to have a material impact on our financial
condition or results of operations.

In September 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Statement No. 157, "Fair Value Measurements." This Statement defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value
measurements. This Statement applies under other accounting pronouncements that
require or permit fair value measurements, the Board having previously concluded
in those accounting pronouncements that fair value is the relevant measurement
attribute. Accordingly, this Statement does not require any new fair value
measurements. The definition of fair value retains the exchange price notion in
earlier definitions of fair value. This Statement clarifies that the exchange
price is the price in an orderly transaction between market participants to sell
the asset or transfer the liability in the market in which the reporting entity
would transact for the asset or liability, that is, the principal or most
advantageous market for the asset or liability. The transaction to sell the
asset or transfer the liability is a hypothetical transaction at the measurement
date, considered from the perspective of a market participant that holds the
asset or owes the liability. Therefore, the definition focuses on the price that
would be received to sell the asset or paid to transfer the liability (an exit
price), not the price that would be paid to acquire the asset or received to
assume the liability (an entry price). This Statement emphasizes that fair value
is a market-based measurement, not an entity-specific measurement. Therefore, a
fair value measurement should be determined based on the assumptions that market
participants would use in pricing the asset or liability. As a basis for
considering market participant assumptions in fair value measurements, this
Statement establishes a fair value hierarchy that distinguishes between (1)
market participant assumptions developed based on market data obtained from
sources independent of the reporting entity (observable inputs) and (2) the
reporting entity's own assumptions about market participant assumptions
developed based on the best information available in the circumstances
(unobservable inputs). The notion of unobservable inputs is intended to allow
for situations in which there is little, if any, market activity for the asset
or liability at the measurement date. In those situations, the reporting entity
need not undertake all possible efforts to obtain information about market
participant assumptions. However, the reporting entity must not ignore
information about market participant assumptions that is reasonably available
without undue cost and effort. This Statement is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. We do not expect the adoption of FAS
157 to have a material impact on our financial condition or results of
operations.



                                       9
<PAGE>

In March 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Statement No. 156, "Accounting for Servicing of Financial Assets--an amendment
of FASB Statement No. 140." This Statement requires an entity to recognize a
servicing asset or servicing liability each time it undertakes an obligation to
service a financial asset by entering into a servicing contract in any of the
following situations: (a) a transfer of the servicer's financial assets that
meets the requirements for sale accounting, (b) a transfer of the servicer's
financial assets to a qualifying special-purpose entity in a guaranteed mortgage
securitization in which the transferor retains all of the resulting securities
and classifies them as either available-for-sale securities or trading
securities in accordance with FASB Statement No. 115, or (c) an acquisition or
assumption of an obligation to service a financial asset that does not relate to
financial assets of the servicer or its consolidated affiliates. This Statement
requires all separately recognized servicing assets and servicing liabilities to
be initially measured at fair value, if practicable. The Statement permits an
entity to choose either of the following subsequent measurement methods for each
class of separately recognized servicing assets and servicing liabilities: (a)
amortization method, or (b) fair value measurement method. At its initial
adoption, the statement permits a one-time reclassification of
available-for-sale securities to trading securities by entities with recognized
servicing rights, without calling into question the treatment of other
available-for-sale securities under Statement 115, provided that the
available-for-sale securities are identified in some manner as offsetting the
entity's exposure to changes in fair value of servicing assets or servicing
liabilities that a servicer elects to subsequently measure at fair value. This
Statement requires separate presentation of servicing assets and servicing
liabilities subsequently measured at fair value in the statement of financial
position and additional disclosures for all separately recognized servicing
assets and servicing liabilities. An entity should adopt this Statement as of
the beginning of its first fiscal year that begins after September 15, 2006.
Earlier adoption is permitted as of the beginning of an entity's fiscal year,
provided the entity has not yet issued financial statements, including interim
financial statements, for any period of that fiscal year. We do not expect the
adoption of FAS 156 to have a material impact on our financial condition or
results of operations.


                                       10
<PAGE>


In February 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Statement No. 155, "Accounting for Certain Hybrid Financial Instruments - an
amendment of FASB Statements No. 133 and 140" ("FAS 155"). FAS 155 amends FASB
Statements No. 133, "Accounting for Derivative Instruments and Hedging
Activities," and No. 140, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities." FAS 155 permits fair value
re-measurement for any hybrid financial instrument that contains an embedded
derivative that otherwise would require bifurcation, clarifies which
interest-only strips and principal-only strips are not subject to the
requirements of Statement 133, establishes a requirement to evaluate interests
in securitized financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an embedded
derivative requiring bifurcation, clarifies that concentrations of credit risk
in the form of subordination are not embedded derivatives, and amends Statement
140 to eliminate the prohibition on a qualifying special-purpose entity from
holding a derivative financial instrument that pertains to a beneficial interest
other than another derivative financial instrument. FAS 155 was issued to
improve financial reporting by eliminating the exemption from applying Statement
133 to interests in securitized financial assets so that similar instruments are
accounted for similarly regardless of the form of the instruments. Providing a
fair value measurement election also results in more financial instruments being
measured at what the FASB regards as the most relevant attribute for financial
instruments, fair value. FAS 155 is effective for all financial instruments
acquired or issued after the beginning of an entity's first fiscal year that
begins after September 15, 2006. Earlier adoption is permitted as of the
beginning of an entity's fiscal year, provided the entity has not yet issued
financial statements, including financial statements for any interim period for
that fiscal year. At adoption, any difference between the total carrying amount
of the individual components of the existing bifurcated hybrid financial
instrument and the fair value of the combined hybrid financial instrument should
be recognized as a cumulative-effect adjustment to beginning retained earnings.
We do not expect the adoption of FAS 155 to have a material impact on our
financial condition or results of operations.

In May 2005, the FASB issued Statement of Financial Accounting Standards No.
154, "Accounting Changes and Error Corrections." This statement applies to all
voluntary changes in accounting principle and requires retrospective application
to prior periods' financial statements of changes in accounting principle,
unless this would be impracticable. This statement also makes a distinction
between "retrospective application" of an accounting principle and the
"restatement" of financial statements to reflect the correction of an error.
This statement is effective for accounting changes and corrections of errors
made in fiscal years beginning after December 15, 2005. The Company is
evaluating the effect the adoption of this interpretation will have on its
financial position, cash flows and results of operations.

                                       11
<PAGE>

In June 2006, FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes--an interpretation of FASB Statement No. 109" ("FIN
48"). This Interpretation clarifies the accounting for uncertainty in income
taxes recognized in an enterprise's financial statements in accordance with FASB
Statement No. 109, Accounting for Income Taxes. This Interpretation prescribes a
recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a
tax return. This Interpretation also provides guidance on derecognition,
classification, interest and penalties, accounting in interim periods,
disclosure, and transition. The evaluation of a tax position in accordance with
this Interpretation is a two-step process with the first step being recognition
and the second step measurement. Differences between tax positions taken in a
tax return and amounts recognized in the financial statements will generally
result in one of the following: (a) an increase in a liability for income taxes
payable or a reduction of an income tax refund receivable (b) a reduction in a
deferred tax asset or an increase in a deferred tax liability. This
Interpretation is effective for fiscal years beginning after December 15, 2006.
We have not yet adopted FIN 48 and do not expect the adoption to have a material
impact on our financial condition or results of operations.


Reclassifications

Certain reclassifications have been made to the 2005 financial statements in
order to conform to the current presentation.



                                       12
<PAGE>


                           ELECTRONIC GAME CARD, INC.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Continued)

                                   (Unaudited)


NOTE 2 INCOME TAXES

The Company is subject to income taxes in the United States of America, United
Kingdom, and the state of New York. As of December 31, 2005, the Company had a
net operating loss carry forward for income tax reporting purposes of
approximately $17,444,213 in the United States and $5,714,249 in the United
Kingdom that may be offset against future taxable income through 2023. Current
tax laws limit the amount of loss available to be offset against future taxable
income when a substantial change in ownership occurs. Therefore, the amount
available to offset future taxable income may be limited. No tax benefit has
been reported in the financial statements, because the Company believes there is
a 50% or greater chance the carry-forwards will expire unused. Accordingly, the
potential tax benefits of the loss carry-forwards are offset by a valuation
allowance of the same amount.

For the years ending December 31, 2005 and 2004 income tax expense was $0 and $0

SFAS No.109 requires recognition of deferred income tax assets and liabilities
for the expected future income tax consequences, based on enacted tax laws, of
temporary differences between the financial reporting and tax bases of assets
and liabilities



NOTE 3 RELATED PARTY TRANSACTIONS

During the nine months ended September 30, 2006 and the year ended December 31,
2005, the Company has certain related party receivables due on demand and are
non-interest bearing. In previous years, the Company and its subsidiaries had
borrowed from the same companies in excess of $1 million with little or no
interest. As of September 30, 2006 and December 31, 2005 , $3,118 and $0 is
still owed to the Company.

During the nine months ended September 30, 2006 and the year ended December 31,
2005, the Company has certain related party payables due on demand and are
non-interest bearing. In previous years, the Company and its subsidiaries had
borrowed from the same companies in excess of $1 million with little or no
interest. As of September 30, 2006 and December 31, 2005, $0 and $106,944, no
liability remains.


NOTE 4 STOCK OPTIONS /WARRANTS

The Company has adopted a stock compensation plan entitled the 2002 Equity
Compensation Plan. Pursuant to this 2002 Equity Compensation Plan, grants of
shares can be made to (i) designated employees of Electronic Game Card Inc. (the
"Company") and its subsidiaries including Electronic Game Card Ltd, (ii) certain
advisors who perform services for the Company or its subsidiaries and (iii)
non-employee members of the Board of Directors of the Company (the "Board") with
the opportunity to receive grants of incentive stock options, nonqualified
options, share appreciation rights, restricted shares, dividend equivalent
rights and cash awards. The Company believes that the Plan will encourage the
participants to contribute materially to the growth of the Company, thereby
benefiting the Company's shareholders, and will align the economic interests of
the participants with those of the shareholders.



                                       13
<PAGE>


                           ELECTRONIC GAME CARD, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (Continued)
                                   (Unaudited)


NOTE 4 STOCK OPTIONS /WARRANTS
       (Continued)

The 2002 Equity Compensation Plan provides for options equivalent up to 10% of
the issued share capital of the company to be offered. The original exercise
price of the options was equal to one half the price at which the Common Stock
is issued at the first public offering, however, subsequent to the adoption of
the 2002 Equity Compensation Plan the board determined that the exercise price
would be issued from a range of $0.50 to $2.00 per option. Those eligible to
participate in this plan are entitled to vest 25% of the stock offered in this
option for each six months of service with the Company. After vesting the
exercise of these options must be done within ten years of the option date. As
of December 31, 2004, 1,190,000 of a total possible of 1,200,000 options have
been distributed. No further stock option plans have been instituted. During
2004 the Company recorded $110,700 in compensation expense in connection with
options granted pursuant to this plan. In connection with a private placement on
February 20, 2004, the Company issued 3,426,875 warrants. Each warrant is
exercisable for a period of five years at a price of $1.00 for one share of
common stock. The warrants were determined to have no value at the time of their
issuance.

In addition, on February 20, 2004, the Company issued additional warrants as
consideration for assistance in placing the common stock pursuant to the private
placement. The warrants were issued as follows: 1) Warrants to purchase up to
353,750 shares of common stock at an exercise price of $1.00 per share were
granted to Middlebury Capital LLC. These were granted as compensation for
placement agents for the private placement. These are exercisable through
February 20, 2009. 2) Warrants to purchase up to 32,000 shares of common stock
at an exercise price of $1.00 per share were granted to National Securities,
Inc. These were granted as compensation for placement agents for the common
stock. These are exercisable through February 20, 2009. 3) Warrants to purchase
up to 200,000 shares of common stock at an exercise price of $1.00 per share
were granted to First Securities USA, Inc. These were granted as compensation
for placement agents for the common stock. These are exercisable through
February 20, 2009. 4) Warrants to purchase up to 86,250 shares of common stock
at an exercise price of $1.00 per share were granted to IQ Ventures. These were
granted as compensation for placement agents for the common stock. These are
exercisable through February 20, 2009.

The company has agreed that warrant holders could elect to convert their
warrants by a cashless exercise. This provision permits the warrant holder to
cancel sufficient warrants at the then current share price to receive the
balance of the warrants in Common Stock without payment to the company. In 2004
the Company has recorded $3,961,072 in compensation expense in connection with
the granting and cashless provision of the warrants detailed above.


NOTE 5 JOINT VENTURE

On October 12, 2004, the Company entered into a joint venture agreement with
Scientific Games International, Inc. ("SciGames:), to exclusively market and
promote the Company's Electronic Game Card product worldwide to national and
state lotteries. SciGames purchased Two Million One Hundred Seventy-One Thousand
Five Hundred Ninety-Four (2,171,594) shares of newly-issued common stock, par
value $0.001 per share of the Company for an aggregate purchase price of
$1,085,797.50 pursuant to a subscription agreement dated October 12, 2004. At
the closing, the Company contributed One Million Dollars ($1,000,000) to the
joint venture. The closing was completed on November 12, 2004 when the funds
cleared into the joint venture's account.



                                       14
<PAGE>

                           ELECTRONIC GAME CARD, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (Continued)
                                   (Unaudited)



NOTE 6   CONVERTIBLE PROMISSORY NOTE

On March 24, and April 6th, 2005 the Registrant sold a total of $8,666,000
Convertible Promissory Notes to accredited investors in a private placement of
securities. This note is payable upon written demand which may be made on or
after March 31, 2007, unless this note has been converted into shares of the
Company's "Series A Preferred Stock" or "Common Stock". The Interest rate of
this note is 6%. In connection with the convertible debt issuance on March 24,
2005 the company incurred charges in the amount of $718,800. These costs are
being amortized over the two year life on the note and as of September 30, 2006
the amortization amount that has been booked to interest expense is $539,100.

Each $48,000 principal amount of a Convertible Promissory Note will
automatically convert into 32,000 shares of the Registrant's Series A
Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred
Stock"), upon the effectiveness of actions by the Registrant's shareholders to
authorize the Series A Preferred Stock. Each share of the Series A Preferred
Stock is initially convertible into one (1) share of the Registrant's common
stock, par value $0.001 per share (the "Common Stock"), which equates to an
initial conversion price of $1.50 per share of Common Stock. The Convertible
Promissory Notes may be converted, at the purchaser's discretion, directly into
Common Stock on an as-converted-into-Series-A-Preferred-Stock basis, whether or
not the Series A Preferred Stock is authorized and issued, and are immediately
convertible for such purpose. Consequently, each Convertible Promissory Note is
convertible ultimately into an aggregate of 32,000 shares of Common Stock. Also,
the Registrant issued one (1) warrant (a "Warrant") to acquire one (1) share of
Series A Preferred Stock for every two shares of Series A Preferred into which
the Convertible Promissory Notes are initially convertible. The Warrants shall
be exercisable to acquire shares of Series A Preferred Stock upon the
effectiveness of actions by the Registrant's shareholders to authorize the
Series A Preferred Stock. The Warrants shall be exercisable initially at $1.85
per share of Series A Preferred Stock, subject to adjustment, and shall be
exercisable for a period of 5 years. In addition, at the option of the holder,
each Warrant is also immediately exercisable directly to acquire, instead of
shares of Series A Preferred Stock, shares of Common Stock on an
as-converted-from-Series-A-Preferred-Stock basis, whether or not the Series A
Preferred Stock is ever authorized or issued. Unexercised Warrants shall expire
earlier upon notice by the Company to the holders of the Warrants following any
consecutive 30-day trading period during which the Common Stock trades on its
principal market at a price at or above three (3) times the then applicable
exercise price with average daily volume of at least 100,000 shares (subject to
adjustment of such trading volume threshold in the event of stock splits,
reverse stock splits, stock dividends, recapitalizations or similar events).


The Convertible Promissory Notes were issued with 2,888,667 five (5) year
warrants exercisable at $1.85 per share. The warrants were valued at $2,384,160
and is being amortized over a two year period. For the three months and nine
months ended September 30, 2006 $298,020 and $894,060 was charged to interest
expense.

The Convertible Promissory Notes were issued with a Beneficial Conversion
Feature of $4,679,640 and is being amortized over a two year period. For the
three months and nine months ended September 30, 2006 $584,955 and $1,754,865
was charged to interest expense.

The Company has agreed to register the 5,777,333 shares of common stock
underlying the Convertible Promissory Notes. The Company is currently in default
of this requirement and has incurred a Late Registration Fee three months and
nine months ended September 30, 2006 $259,980 and $779,940.



                                       15
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

GENERAL

Statements contained in this interim report on Form 10-QSB, which are not purely
historical, are forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act of 1934,
including but not limited to statements regarding the Company's expectations,
hopes, beliefs, intentions or strategies regarding the future. Actual results
could differ materially from those projected in any forward-looking statements
as a result of a number of factors, including those detailed in the "Risk
Factors" contained in our Annual Report on Form 10-KSB for the year ended
December 31, 2005 and elsewhere in this Quarterly Report on Form 10Q-SB. The
forward-looking statements are made as of the date hereof, and the Company
assumes no obligation to update the forward-looking statements, or to update the
reasons why actual results could differ materially from those projected in the
forward-looking statements. Accordingly, you should not unduly rely on
forward-looking statements.

COMPANY OVERVIEW

Electronic Game Card, Inc. (referred to as "EGC", "us", "we" or "Company") is a
supplier of innovative games to the lottery and promotional industry worldwide.
Our lead product is the EGC GameCard, a proprietary credit card-sized pocket
game combining interactive capability with "instant win" excitement. We have had
revenues of $1,403,981 from sales of the GameCards since inception. The company
has incurred losses of $25,104,197 since inception.

The EGC GameCard was designed by us to be rich in functionality, customizable,
portable, and cost efficient. Each EGC GameCard is equipped with a
microprocessor, random number generator, LCD, and power source, and security
features protecting both the consumer and the promoter. The EGC GameCard weighs
in at just less than one half ounce and is approx. 3mm thick. We have three
distinct markets for our GameCard product : the Lotteries; Indian Gaming, and
the Sales Promotions.

LOTTERY MARKET

Lottery operators currently make use of paper scratch cards to give players an
"instant" win or lose reward experience. Over the last several years, scratch
cards have become increasingly large and complex to accommodate consumer demand
for multiple plays and multiple chances to win. The EGC GameCard offers the
potential to simplify the scratch card while giving the opportunity to raise the
selling price to consumers and increase sales. Our product has been seen by some
leaders in the lottery industry as potentially providing the next contemporary
digital evolution of the scratch card, offering multiple plays and multiple
chances to win in an entertaining and secure manner while using existing methods
of distribution as with scratch cards.

EGC's Joint Venture agreement with Scientific Games resulted from the first
consumer launch of the EGC GameCards to the Iowa State lottery. The Iowa Lottery
Quarter Play GameCard was launched on October 4, 2004 and the Iowa Lottery and
Scientific Games publicly stated that the results exceeded their expectations of
sales level and consumer reaction. The Iowa Lottery placed a re-order for a
further 189,000 Quarter Play GameCards for delivery in April 2005 and agreed to
place orders for over 500,000 GameCards in total to be delivered during 2005.
This order and an order to the Kansas States Lottery for 120,000 GameCards were
delayed until 2006 due to further product development.

The delayed order for 120,000 Kansas State Lottery Lucky 7s went on sale on the
June 1, 2006. The market demand for the Lucky 7s Electronic GameCard was high.
This success has prompted Kansas to announce on July 25 , 2006 an immediate and
complete repeat of the order for 120,000 Lucky 7s Electronic GameCard and to
order the next Electronic GameCard to introduce to Kansas Lottery players in
early 2007.



                                       16
<PAGE>

The delay to the Iowa lottery product was also eliminated when the latest
Electronic GameCard game "Pocket Poker" went on state-wide sale on the July 31,
2006. With the Electronic GameCard distribution complete, Iowa Lottery undertook
a marketing campaign in early August to generate interest including activities
at the Iowa State Fair. The lottery has now ordered another game for delivery in
the first quarter of 2007.

The company has also received an order from a further State lottery for 180,000
units to be delivered in early 2007 for public sale during the 2nd quarter of
2007.

SALES PROMOTION MARKET

The sales promotion prize and competition market is one in which the promoter
(usually a well known brand) must not be seen to obtain money for entry and
where no purchase of the brand's goods is necessary in order not to fall under
the laws by which lotteries are regulated our EGC GameCards can be applied to a
broad range of potential promotional opportunities.

The early pricing and delivery strategy of the GameCards have caused potential
customers to reconsider their purchase of our products, our new product strategy
is designed to address this concern. Introducing a new product into the sales
and promotion marketing arena, despite its demand for novelty products and
innovative ideas, takes time and adaptability to market needs.

Targeting the Electronic GameCard at the Gaming sales promotion and charity draw
market has produced results. On the May 11, 2006 Ward Media, a direct marketing
agency representing leading online casino Golden Palace.com, announced that it
is to use the "Codebreaker GameCard TM " in a new promotion for Goldenplace.com
the on-line casino.

Then on July 8, 2006 , EGC announced that the MGM Grand Casino in Detroit had
order a promotion using Electronic GameCards. The announcement stated that the
promotion would start in Q3 2006 and be aimed at the Michigan Area. The
promotion ran as planned and results are being evaluated by the client.

On July 25, 2006 Electronic GameCard, confirmed that the Santa Ana Star Casino
has signed an agreement to use Electronic GameCards in a promotion for its
gaming property in the Pueblo of Santa Ana, New Mexico. The Santa Ana Star
Casino is the first U.S. Native American gaming casino to purchase Electronic
GameCards for use in a commercial promotion.

On October 10, 2006 EGC announced a contract to work with the Aspers Casino, in
Newcastle, England on a promotional mailing for the Fourth Quarter of 2006. This
order has now been delivered. This is the first delivery to a UK casino
operator. We expect to recognize revenue in the fourth quarter of 2006.

On October 27, 2006 EGC also announced a delivery consignment to The Norwegian
Association of the Disabled for a Q4 promotion. We expect to recognize revenue
in the first quarter of 2007.

On November 6, 2006 EGC also announced a sale to confirmed that Cantor Gaming, a
provider of online and mobile gaming services and an affiliate of global
financial services company, Cantor Fitzgerald, has placed an order to use
Electronic GameCards for a major casino player recruitment campaign. This is the
first sales to a UK based on-line gaming operation. Cantor Gaming operations do
not accept American client and therefore are not affected by the recent change
in United States legislation. These sales promotion sector orders demonstrate
the commercial promotions opportunities for the Electronic GameCard and the
basis for continued marketing activity. EGC is confident that the interest shown
in this sector will continue to increase in 2007. We expect to recognize revenue
in the fourth quarter of 2006.

INDIAN GAMING MARKET

The Indian Gaming on Native American Tribal Lands covers parts of 28 States
within the United States of America and represents a significant portion of the
total gaming industry.

The Indian Tribes often look to Gaming Laboratories, Inc. for certification and
classification of gaming devices. However, with respect to the GameCards, as
with instant scratch games, the GameCards do not rely on an electronic mechanism
to produce the results of the game and are therefore classified as Class II
products.


                                       17
<PAGE>


The Company has received a legal opinion from the National Indian Gaming
Commission ("NIGC") that the EGC GameCard is a Class II device under IGRA
(Indian Gaming Regulatory Act). The Class II designation is significant because
it exempts the Company from becoming subject to the state license procedures and
requirements.

The NIGC opinion letter refers to Version 1 of the Electronic GameCard and then
Version 2. The General Counsel then places these product versions in different
gaming classifications of NIGC regulations, namely Class III and Class II
respectively. The difference in the NIGC classifications is as follows :

NIGC Class II gaming regulations refer to bingo, when played in the same
location as bingo, pull tabs, lotto, punch boards, tip jars, instant bingo, and
other games similar to bingo, and non-house banked card games authorized by or
not explicitly prohibited by the state in which the tribal operation is located.
NIGC Class III gaming regulations refer to, but are not limited to the
following; baccarat, chemin de fer, blackjack, slot machines, and electronic or
electromechanical facsimiles of any game.


The broad difference is that Class II classified products are physical played
games like the checking of a bingo card or the pulling of the pull-tab. Whereas
Class III products are electronic or electromechanical facsimiles of any game of
chance.

Version 1 of the GameCard submitted to NIGC was purely an electronic GameCard
that could only be played by activating the electronic circuit. Therefore, the
Electronic GameCard was classified as a Class III gaming product.

EGC was advised that the application of a scratch panel to the electronic
GameCard, which would allow the physical playing of the game card, could change
the NIGC classification. The application of a scratch panel would then define
the electronic display as an alternative means of play that is just a
technological aid.

A scratch panel was applied to the GameCard for Version 2 of the electronic
GameCard that was then sent to the NIGC General Counsel. NIGC then classified
the scratch panel electronic GameCard as an NIGC Class II gaming product. Class
II is the appropriate classification because the electronic GameCard with a
scratch panel is now physically played like a pull tab with no need to activate
the electronic circuit or to play the electronic version of the game while being
able to reach the end of the game and rewards payout, if any.

Throughout this classification discussion EGC worked closely with NIGC's General
Counsel on the GameCards classification. The General Council, under NIGC
regulations, provides advisory opinions to gaming product developers as to
whether any product would be likely to be classified in Class II or Class III.

The success in the sales promotion in the Gaming sector and in particular the
sale to the Santa Ana Star Casino, New Mexico demonstrate the interest in the
Electronic GameCard in this sector. Therefore EGC continues the sales and
marketing activity to generate sales around Class II gaming.

BUSINESS STRATEGY

The Company is currently marketing the EGC GameCard to lottery promoters in the
US through its joint venture with Scientific Games International, Inc. A further
opportunity has now opened to the company following approval of our product for
sale to consumers on Tribal Lands by the NIGC (see above) which opens up a
substantial market place.

The Electronic GameCard is supported by the EGC Sales and Marketing and the
design of Games Concepts and software. The company strategy is to develop
generic games which do not require specific customization and consequently avoid
lengthy software processes. This allows for sales of EGC product in smaller
quantities and at greatly improved delivery times, the lack of which the Company
believes was a previous impediment to sales.
We are also working closely with strategic partners to distribute our products
globally. We typically enter into exclusive contracts with strategic partners
for a specific market and geography and several such negotiations have been
completed recently in Portugal, India, and Mexico.



                                       18
<PAGE>

PRODUCT DEVELOPMENT

The company has a continuous program of product development comprising
improvement of existing designs and additions to the suite of games currently on
offer to clients. Game design is divided into four stages; concept development,
software, testing and finally manufacturing. Product development and improvement
is generated by in house review and response to specific customer
recommendations.

The physical design of the GameCard has been enhanced through modifications to
circuit design, leading to a more robust product. Independent Quality Assurance
testing from our most recent manufacturing runs indicates that we are now
producing our most reliable product to date. Performance is constantly being
reviewed to improve the GameCard still further. In addition to improved circuit
design we are currently upgrading the MCU Body (chip) on a number of our games.
This will further improve reliability.

In the last quarter we launched Tic Tac Toe and Florida Dice. The development of
Florida Dice was a result of our flexible approach to game design and product
innovation. While this game had not been considered until recently however the
concept was developed and has been well received and the game has been added to
those already in development. Work has continued on games previously mentioned,
Lucky 8's is now in the testing stage, this is a game designed specifically to
appeal to the Asian market. Development work continues on the two variations of
a Deal or No Deal themed game as well as a Match 3/ Number grid game and the
Hole In One golf themed game. We have a total of 17 games in our portfolio.

Research and Development continues on a range of additional games and concepts
for possible inclusion in our portfolio

      o     Blackjack - a version of the enormously popular casino game where
            the player attempts to beat the house - software in development
      o     "Goal King" single player - a variation on our existing two player
            Goal King game - software in development
      o     Monopoly - a slot style game using icons from the timeless board
            game Monopoly(TM) as a theme - concepts in development
      o     Texas Hold'em - currently the most popular version of poker amongst
            internet poker and traditional style players - concepts in
            development
      o     Soccer Collection - a non-gaming product aimed at the collectible
            market for sports and trading cards - concepts in development.


RESULTS OF OPERATIONS

The company has recorded $331,522 of revenues this quarter and $684,839 for the
year to date. Sales and Marketing costs were $88,668 compared with $284,610 in
the same period of 2005. This reflects a reduction in attendance at trade shows
and events during the period. General and Administration expenses were $517,151
compared with $786,528 for the same period in 2005. This expense was lower than
the comparable period as we continued to make economies during the period.
Consultancy costs were lower at $495,543 compared with $690,918 in the previous
year due to expenditure incurred in the prior period to resolve some quality
control problems in the production process. Salaries and payroll costs were
$436,669 compared with $592,067 in 2005 as there were fewer employees in the
period. Operating loss increased to $5,897,181 compared with $2,737,184 for the
comparable period due to interest and finance charges related to the fundraising
in April 2005 which were $3,970,799 higher than the comparable period. Operating
losses excluding the interest charges were $2,121,573 compared to $2,312,921 he
comparable period of 2005.

FINANCIAL RESOURCES

Through April 6, 2005 the company sold $8,666,000 gross, $7,911,400 net, of its
convertible promissory

notes (the "Convertible Promissory Notes") to accredited investors in a private
placement of securities (the "Private Placement"). Each $48,000 principal amount
of a Convertible Promissory Note will automatically convert into 32,000 shares
of the Registrant's Series A Convertible Preferred Stock, par value $0.001 per
share (the "Series A Preferred Stock").



                                       19
<PAGE>

Each share of the Series A Preferred Stock is initially convertible into one (1)
share of the Registrant's common stock, par value $0.001 per share (the "Common
Stock"), which equates to an initial conversion price of $1.50 per share of
Common Stock. Also, the Company issued one (1) warrant (a "Warrant") to acquire
one (1) share of Series A Preferred Stock for every two shares of Series A
Preferred into which the Convertible Promissory Notes are initially convertible.
The Warrants shall be exercisable to acquire shares of Series A Preferred Stock
upon the effectiveness of actions by the Registrant's shareholders to authorize
the Series A Preferred Stock. The Warrants shall be exercisable initially at
$1.85 per share of Series A Preferred Stock, subject to adjustment, and shall be
exercisable for a period of 5 years.


ITEM 3.  CONTROLS AND PROCEDURES

At the end of the period covered by this report the Company carried out an
evaluation under the supervision and with the participation of the Company's
management including the Company's Chief Executive Officer and the Company's
Chief Financial Officer of the effectiveness of the design and operation of the
Company's disclosure controls and procedures (as defined in Rules 13a-15e and
15d -15-e under the Securities Exchange Act of 1934 as amended). Based on this
evaluation the Company's Chief Executive Officer and the Company's Chief
Financial Officer the Company concluded that information is recorded, processed,
summarized and reported within the time period specified by the Commission's
rules and forms, and that information is accumulated and communicated to our
management, including our Chief Executive Officer (or Acting Chief Executive
Officer, as the case may be) and our Chief Financial Officer, as appropriate to
allow timely decisions regarding required disclosure. Under the supervision and
with the participation of our Chief Executive Officer (or acting Chief Executive
Officer, as the case may be) and our Chief Financial Officer, we evaluated the
effectiveness of the design and operation of our disclosure controls and
procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of September
30, 2006, the end of the period. Following the review by our Chief Executive
Officer (or acting Chief Executive Officer, as the case may be) and our Chief
Financial Officer, each of them has determined that our disclosure controls and
procedures are effective.


CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There were no changes in the Company's internal controls over financial
reporting, that occurred during the period covered by this report that has
materially affected, or are reasonably likely to materially effect, the
Company's internal control over financial reporting.



                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.


ITEM 2.  CHANGES IN SECURITIES

None.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.


                                       20
<PAGE>


ITEM 5. OTHER INFORMATION

On August 15, 2006, the Registrant's independent registered public accounting
firm, Robison, Hill & Co., resigned as the Company's independent auditors due to
the loss of a certain staff member who worked on our audit. Robison, Hill & Co.
has not been able to replace that staff member in a timely manner.

The Registrant has not had any disagreements with Robison, Hill & Co. during the
two most recent fiscal years and the interim period on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure nor has Robison, Hill & Co. resigned, (other than the resignation of
August 15, 2006), declined to stand for re-election or been dismissed during
that period. The financial statements audited by Robison, Hill & Co. for the
years ended December 31, 2004 and December 31, 2005 do not contain an adverse
opinion or a disclaimer of opinion, but include an uncertainty about the
Registrant's ability to continue as a going concern.

On August 18, 2006, the Board of Directors approved the decision to change
independent registered public accounting firms and accepted the resignation of
Robison, Hill & Co. The Registrant has requested Robison, Hill & Co. address a
letter to the Securities and Exchange Commission concurring with the above
representation. A copy of such letter, dated August 29, 2006, is filed herewith
as Exhibit 16.1.

The Registrant appointed Mendoza Berger & Company, LLP as its new independent
registered public accounting firm as of August 18, 2006. The firm's address is
9838 Research Drive, Irvine, California 92618.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

Filings on Form 8K

On August 15,2006 the company filed a Form 8K notifying changes in it's
certifying accountant.


(a)   The following exhibits are included as part of this report:

Exhibit
Number      Title of Document

31.1        Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002.

31.2        Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002.

32.1        Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
            2002.

32.2        Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
            2002.


                                       21
<PAGE>



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereto duly
authorized.




                                           ELECTRONIC GAME CARD

Date : November 16, 2006                   By: /s/ Lee Cole
                                           ---------------------------------
                                           Lee Cole
                                           Acting President and Acting Chief
                                           Executive Officer



Date : November 16, 2006                   By: /s/ Linden Boyne
                                           ---------------------------------
                                           Linden Boyne
                                           Secretary / Treasurer
                                           (Principal Financial Officer)