**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


WASHINGTON,
      D.C. 20549





**FORM
      10-QSB/A**




**x QUARTERLY
      REPORT
      UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT**


**OF
      1934**





**FOR
      THE QUARTERLY PERIOD ENDED: September 30 , 2007**





**o TRANSITION
      REPORT
      UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT**


**OF
      1934**





*Commission
      file number 000-25853*





**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 o





Indicate
      by check mark whether the registrant is a shell company (as defined by Rule
      12b-2 of the Exchange Act. Yes o No x





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practical date : As of October 31 there were 48,313,317 shares
      of the issuer’s $0.001 par value common stock issued and
      outstanding.





Traditional
      small business disclosure format Yes o No x







**PART
      I** **:
      FINANCIAL INFORMATION**


**Item
      1. Financial Statements**


**ELECTRONIC
      GAME CARD, INC**


**CONSOLIDATED
      BALANCE SHEETS**





September
                30, 2007
              Unaudited
            
            
            December
                31,
              2006**ASSETS**CURRENT
                ASSETSCash
                and cash equivalents
            
            $
            3,473,937
            
            $
            3,052,733Accounts
                receivable
            
            
            2,836,646
            
            
            415,067Deposit
                on inventory
            
            
            126,941
            
            
            97,571VAT
                receivable
            
            
            39,312
            
            
            19,604Deferred
                charges
            
            
            228,714
            
            
            343,071Related
                party receivable
            
            
            -
            
            
            79,275Total
                current assets
            
            
            6,705,550
            
            
            4,007,321PROPERTY
                AND EQUIPMENTPlant
                and machinery
            
            
            26,729
            
            
            75,586Office
                equipment
            
            
            67,779
            
            
            63,852Furniture
                and fixtures
            
            
            51,437
            
            
            1,375Less
                : accumulated depreciation
            
            
            (102,165
            )
            
            (78,627
            )Property
                and equipment, net
            
            
            43,780
            
            
            62,186OTHER
                ASSETSPatents
            
            
            29,234
            
            
            29,234Investments,
                at cost
            
            
            1,380,553
            
            
            1,018,269**TOTAL
                ASSETS**
            
            $
            8,159,117
            
            $
            5,117,010**LIABILITIES
                AND STOCKHOLDERS' EQUITY/(DEFICIT)**CURRENT
                LIABILITIESAccounts
                payable
            
            $
            1,217,581
            
            $
            1,140,291Accrued
                liabilities
            
            
            372,000
            
            
            --Total
                current liabilities
            
            
            1,589,581
            
            
            1,140,291Deficit
                in joint venture
            
            
            --
            
            
            12,489Deferred
                license fees
            
            
            904,625
            
            
            --Series
                A 6% convertible redeemable preferred stock, par value
                $0.001,
              10,000,000
                shares authorized, 8,666,000 and 8,407,238 shares issued
              and
                outstanding as of September 30, 2007
            
            
            8,407,238
            
            
            8,407,238STOCKHOLDERS'
                EQUITY/(DEFICIT)Common
                stock, par value $0.001, 100,000,000 shares authorized,
              44,168,683
                and 44,168,683 shares issued and outstanding as of
              September
                30, 2007 and December 31, 2006, respectively
            
            
            44,169
            
            
            44,169Additional
                paid-in capital
            
            
            25,188,340
            
            
            25,188,340Accumulated
                deficit
            
            
            (27,161,756
            )
            
            (28,920,957
            )Accumulated
                other comprehensive loss
            
            
            (813,080
            )
            
            (754,560
            )Total
                Stockholders’ Deficit
            
            
            (2,742,327
            )
            
            (4,443,008
            )**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)**
            
            $
            8,159,117
            
            $
            5,117,010




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




2


**ELECTRONIC
      GAME CARD, INC**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**




**(UNAUDITED)**




**For
                the Three Months Ended**
            **For
                the nine Months Ended****September
                30,**
            **September
                30,****2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006**Revenues
            
            
            1,785,330
            
            
            331,522
            
            $
            4,250,224
            
            $
            684,839Cost
                of sales
            
            
            490,500
            
            
            228,200
            
            
            1,130,852
            
            
            519,856**Gross
                profit**
            
            
            **1,249,830**
            
            
            **103,322**
            
            
            **3,119,372**
            
            
            **164,983**Operating
                expensesSales
                and marketing
            
            
            1,232
            
            
            38,627
            
            
            5,203
            
            
            88,668General
                and administrative
            
            
            146,326
            
            
            176,502
            
            
            431,540
            
            
            525,736Consulting
                expenses
            
            
            125,727
            
            
            138,820
            
            
            282,585
            
            
            455,543Salaries
                and wages
            
            
            109,556
            
            
            116,035
            
            
            312,135
            
            
            436,669Loss
                from joint venture
            
            
            -
            
            
            -
            
            
            18,638
            
            
            -**Total
                operating expenses**
            
            
            **382,841**
            
            
            **469,984**
            
            
            **1,050,101**
            
            
            **1,506,616****Income
                (loss) from operations**
            
            
            911,989
            
            
            (366,662
            )
            
            2,069,271
            
            
            (1,341,633
            )Other
                income (expense)Late
                registration fee
            
            
            
            
            
            (259,980
            )
            
            
            
            
            (779,940
            )Interest
                income
            
            
            49,554
            
            
            
            
            
            147,669Interest
                expense
            
            
            (153,205
            )
            
            (1,307,453
            )
            
            (488,866
            )
            
            (3,775,608
            )Gain
                on termination of joint venture
            
            
            
            
            
            -
            
            
            31,127
            
            
            -**Total
                other income (expense)**
            
            
            **(103,650**
            **)**
            
            **(1,567,433**
            **)**
            
            **(310,070**
            **)**
            
            **(4,555,548**
            **)****Net
                income (loss)**
            
            
            **808,339**
            
            
            **(1,934,095**
            **)**
            $
            1,759,201
            
            $
            (5,897,181
            )Foreign
                currency translation gain / (loss)
            
            
            9,289
            
            
            153,375
            
            
            (58,520
            )
            
            215,014**Comprehensive
                income / (loss)**
            
            
            **817,628**
            
            
            **(1,780,720**
            **)**
            $
            1,700,681
            
            $
            (5,682,167
            )Net
                income / (loss) per common share - basic and diluted
            
            $
            0.02
            
            $
            (0.07
            )
            $
            0.04
            
            $
            (0.23
            )Weighted
                average number of shares outstanding
            
            
            44,168,683
            
            
            26,846,799
            
            
            44,168,683
            
            
            25,765,765







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




3


**ELECTRONIC
      GAME CARD, INC**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**




**(UNAUDITED)**


**For
                  the Nine Months Ended****September
                  30,**
              
              
              **September
                  30,****2007**
              
              
              **2006**CASH
                  FLOWS FROM OPERATING ACTIVITIES :Net
                  income (loss)
              
              $
              1,759,201
              
              $
              (5,897,181
              )Adjustments
                  to reconcile net income (loss) to net cash used inoperating
                  activities:Depreciation
              
              
              23,538
              
              
              16,780Deferred
                  revenues
              
              
              114,357
              
              
              -Amortization
                  of interest expense
              
              
              -
              
              
              1,464,312Amortization
                  of deferred charges
              
              
              -
              
              
              1,041,849Gain
                  on termination of joint venture
              
              
              (31,127
              )
              
              -Loss
                  from joint venture
              
              
              18,638
              
              
              -Change
                  in operating assets and liabilities:(Increase)
                  in accounts receivable
              
              
              (2,421,579
              )
              
              (199,561
              )(Increase)
                  in deposit on inventory
              
              
              (29,370
              )
              
              41,459Decrease
                  in prepaid expenses
              
              
              -
              
              
              -Decrease
                  in Value Added Tax receivable
              
              
              (19,708
              )
              
              10,919Increase
                  (decrease) in accounts payable
              
              
              77,290
              
              
              (153,007
              )(Decrease)
                  in related party payable
              
              
              -
              
              
              (106,944
              )Increase
                  in accrued liabilities
              
              
              372,000
              
              
              1,169,909Increase
                  in deferred license fees
              
              
              904,625
              
              
              -**Net
                  cash used in operating activities**
              
              
              767,865
              
              
              (2,611,465
              )CASH
                  FLOWS FROM INVESTING ACTIVITIES :Purchase
                  of property and equipment
              
              
              (5,132
              )
              
              (54,392
              )Investments
              
              
              (362,284
              )
              
              (350,000
              )**Net
                  cash used in investing activities**
              
              
              (367,416
              )
              
              (404,392
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES:
              
              
              
              
              
              -Advances
                  to related party
              
              
              -
              
              
              (3,118
              )Receipts
                  on related party receivable
              
              
              79,275Proceeds
                  from issuance of Convertible Notes Payable
              
              
              -
              
              
              754,600**Net
                  cash provided by financing activities**
              
              
              79,275
              
              
              751,482Foreign
                  currency exchange effect on cash
              
              
              (58,520
              )
              
              215,014**Net
                  increase (decrease) in Cash**
              
              
              421,204
              
              
              (2,049,361
              )Cash
                  at beginning of period
              
              
              3,052,733
              
              
              5,544,332Cash
                  at end of period
              
              $
              3,473,937
              
              
              3,494,971**Supplemental
                  disclosure of cash flow information**Cash
                  paid during the period for :
              
              
              
              
              $
              -Interest
              
              $
              -
              
              $
              -Income
                  Taxes
              
              $
              -




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




4




**ELECTRONIC
      GAME CARD, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**September
      30, 2007**


**(Unaudited)**




**NOTE
      1**   **ORGANIZATION
      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





**Organization**





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 is engaged in the development, marketing, sale and distribution of
      recreational electronic software which is primarily targeted towards lottery,
      gaming and sales promotion markets through its UK subsidiary.





**Basis
      of Presentation**





The
      unaudited consolidated financial statements included herein have been prepared
      with accounting principles generally accepted in the United States for interim
      financial information and with the instructions to Form 10-QSB and Item 310(b)
      of Regulation S-B. They do not include all information and notes required by
      generally accepted accounting principles for complete financial statements.
      However, except as disclosed herein, there has been no material changes in
      the
      information disclosed in the notes to the consolidated financial statements
      included in the Annual Report on Form 10-KSB of Electronic Game Card, Inc.
      for
      the year ended December 31, 2006. In the opinion of management, all adjustments
      (including normal recurring accruals) considered necessary for a fair
      presentation have been included. Operating results for the three and nine months
      ended September 30, 2007 are not necessarily indicative of the results that
      may
      be expected for any other interim period or the entire year. For further
      information, these unaudited consolidated financial statements and the related
      notes should be read in conjunction with the Company’s audited consolidated
      financial statements for the year ended December 31, 2006 included in the
      Company’s Annual Report on Form 10-KSB.





**Principles
      of Consolidation**





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





·
            Electronic
                Game Card, Inc. (Nevada
                Corporation)


·
            Electronic
                Game Card, Ltd. (United Kingdom
                Corporation)


·
            Electronic
                Game Card Marketing (A Delaware
                Corporation)





The
      results of subsidiaries acquired during the year are consolidated from their
      effective dates of acquisition. All significant inter-company accounts and
      transactions have been eliminated.





Certain
      amounts in the prior periods consolidated financial statements and notes have
      been reclassified to conform to the current period’s presentation.





**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.




5


**ELECTRONIC
      GAME CARD, INC.**


**NOTES
      TO CONSOILDATED FINANCIAL STATEMENTS**


**(Continued)**


**(Unaudited)**




**NOTE
      1**   **ORGANIZATION
      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**


(Continued)




**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**





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





Asset
            
            RatePlant
                and Machinery Equipment
            
            3
                yearsOffice
                Equipment
            
            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
      is eliminated from the property and related accumulated depreciation accounts,
      and any resulting gain or loss is credited or charged to income.





**Advertising
      Costs**





Advertising
      costs are expensed as incurred. For the nine months ended September 30, 2007
      and
      2006, advertising costs were $4,000 and $0, respectively.





**Revenue
      recognition**





Revenue
      is recognized from sales of product when persuasive evidence of an arrangement
      exits; product has been shipped to customers; fee is fixed or determinable;
      and,
      collectibility is reasonably assured.





**Foreign
      Currency Translation**





The
      Company's functional currency for its foreign subsidiary, Electronic Game Card
      Ltd., is the British (UK) Pound and the reporting currency is the U.S. Dollar.
      All elements of financial statements are translated using a current exchange
      rate. For assets and liabilities, the exchange rate at the balance sheet date
      is
      used. Stockholders’ Equity is translated using the historical rate. For
      revenues, expenses, gains and losses the weighted average exchange rate for
      the
      period is used. Translation gains and losses are included as a separate
      component of stockholders’ equity as other comprehensive income or loss. Gain
      and losses resulting from foreign currency transactions are included in net
      income or loss from operations.





6


**ELECTRONIC
      GAME CARD, INC.**


**NOTES
      CONSOLIDATED TO FINANCIAL STATEMENTS**


**(Continued)**


**(Unaudited)**




**NOTE
      1**   **ORGANIZATION
      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**


(Continued)




**Pervasiveness
      of Estimates**





The
      preparation of the consolidated financial statements in conformity with
      generally accepted accounting principles in the United States requires
      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 consolidated financial statements and the reported amounts
      of
      revenues and expenses during the reporting period. Actual results could differ
      from those estimates.





The
      Company’s unaudited consolidated financial statements are based on a number of
      estimates, including accruals for accounts payable and interest expense,
      amortization of deferred charges, allowance for doubtful accounts, estimated
      useful lives of property and equipment, and fair value of
      investments.





**Income
      (Loss) per Share**





Basic
      income (loss) per share has been computed by dividing the income/(loss) for
      the
      year applicable to the common stockholders by the weighted average number of
      common shares outstanding during the years. As of June 30, 2007, 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 June 30, 2007 and 2006 and are thus not
      considered.





**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.




**NOTE
      2**   **GOING
      CONCERN**





The
      unaudited consolidated 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
      $27,000,000 for the period from August 8, 2000 (inception) to September 30,
      2007. The Company’s future capital requirements will depend on numerous factors
      including, but not limited to, continued progress in developing its products,
      market penetration and profitable operations from sale of its electronic game
      cards. As such, the Company would require additional debt or equity financing
      to
      support its operations if it does not continue to achieve positive cash flows
      from operations.




7


**ELECTRONIC
      GAME CARD, INC.**





**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Continued)**





**(Unaudited)**





**NOTE
      2**   **GOING
      CONCERN**


(Continued)





These
      unaudited consolidated 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 any 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.




**NOTE
      3**   **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 June 30, 2007, the Company had a
      net
      operating loss carry forwards for income tax reporting purposes of approximately
      $19,711,106 in the United States and $7,913,052 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. Accordingly, the potential tax
      benefits of the loss carry-forwards are offset by a valuation allowance of
      the
      same amount.





For
      the
      years ending September 30, 2007 and 2006 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
      4**   **RELATED
      PARTY TRANSACTIONS**





As
      at
      September 30, 2007 and December 31, 2006 the Company was owed $0 and $79,275
      by
      related parties incurred in the ordinary course of business.





During
      the nine months ended September 30, 2007 and the year ended December 31, 2006
      the Company incurred rent expense of $74,632 and $108,000 for rent for the
      New
      York office and $60,000 and $80,000 for the London office,
      respectively.




**NOTE
      5**   **STOCK
      OPTIONS /WARRANTS**





The
      Company has adopted a stock compensation plan entitled the 2007 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


8


**ELECTRONIC
      GAME CARD, INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(Continued)**


**(Unaudited)**




**NOTE
      5**   **STOCK
      OPTIONS /WARRANTS**


(Continued)





(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. The 2007 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 at market
      price. 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 September 30, 2007, 1,190,000 of a total
      possible of 1,200,000 options have been distributed. During 2004 the Company
      recorded $110,700 in compensation expense in connection with options granted
      pursuant to this plan. In February 2007 the company adopted an equity
      compensation plan entitled The 2007 Equity Compensation Plan. The 2007 Equity
      Compensation Plan provides for options equivalent up to 10% of the issued share
      capital of the company to be offered. On February 6, 2007 the company issued
      2,000,000 options to management and staff at an exercise price of 17.5c per
      share and 2,000,000 at an exercise price of 25c per share.





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. In connection with a private placement on March, 2005, the Company
      issued 3,426,875 warrants. Each warrant is exercisable for a period of five
      years at a price of $0.50 for one share of common stock. The warrants were
      determined to have no value at the time of their issuance.





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.





9


**NOTE
      6**   **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. During the nine months ended September 31, 2007, the Company
      had a loss from the joint venture in the amount of $18,638 which represented
      the
      Company’s allocable 50% interest. On April 27, 2007, the Company and SciGames
      mutually agreed to terminate their joint venture and entered into a separate
      License and Royalty Agreement as detailed in Note 7.




**NOTE
      7**   **LICENSE
      AGREEMENT** Pursuant
      to the License Agreement, SGI shall have the exclusive right, for a period
      of
      three years (subject to extension as discussed below), to produce, market,
      sell
      and distribute the Electronic GameCard TM in
      compliance with all applicable laws, to all public lotteries operated by
      national, state or provincial governmental entities or private entities
      operating such public lotteries on behalf of such governmental entities (the
      “Public Lotteries”) in the U.S., Canada, Mexico and Italy. SGI also shall have a
      non-exclusive license to produce, market, sell and distribute the Electronic
      GameCard TM worldwide during the ten year term of the License Agreement and any
      extensions thereof. For
      purposes of the License Agreement, the term “Public Lotteries” does not include
      lotteries conducted by charitable entities or lotteries conducted by other
      persons, entities or bodies that are not operated on behalf of national, state
      or provincial governmental entities. SGI agreed to package and label Electronic
      GameCard TM as requested by the Company at a reasonable rate of compensation to
      be mutually agreed by the parties. EGC retained
      all other rights with respect to the intellectual property which is the subject
      of the License Agreement. In connection with the sale, marketing, production
      and
      distribution of the Electronic GameCard TM, EGC shall provide SGI full access to
      EGC’s producers, manufacturers and suppliers of all components for and assembly
      of the Electronic GameCard TM





SGI
      may
      extend its exclusive rights with respect to “Public Lotteries” in the U.S.,
      Canada, Mexico and Italy during the term of the License Agreement on a yearly
      basis beyond the first three years of the License Agreement. To effect such
      an
      extension of exclusivity, SGI must pay to EGC in cash,, the sum of at least
      $500,000 in license fees for the year preceding the extension (including any
      topping off payment by SGI if license fees paid to EGC for such year otherwise
      would be less than $500,000).





During
      the term of the License Agreement, SGI
      has
      agreed to pay to the Company as a royalty fee (“Royalty Fee”) on a quarterly
      basis the greater of $.05 per Electronic GameCard TMGameCard TM and five
      percent (5%) of the gross selling price without deduction of taxes, expenses
      or
      promotions, for Electronic GameCard TMGameCards sold by SGI or its affiliates. SGI
      may
      not assign, sublicense or otherwise transfer the License Agreement to a third
      party without the prior written consent of EGC .




**NOTE
      8**   **SERIES
      A PREFERRED STOCK**





On
      March
      24, and April 6 th ,
      2005
      the Registrant sold a total of $8,666,000 Convertible Promissory Notes to
      accredited investors in a private placement of securities. This note was payable
      upon written demand which may be made on or after March 31, 2007, and was
      converted into Series A Preferred stock at the company’s election on November
      29, 2006. Each share of Series A Preferred Stock is convertible into one share
      of Common Stock at no cost by stockholder and is redeemable by the company
      not
      later than March 15, 2010. Series A Preferred Stock pays interest at 6% per
      annum. 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
      stock. 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 at
      $0.50 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).





10




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





The
      following information should be read in conjunction with the consolidated
      financial statements and notes thereto appearing elsewhere in this Form 10-QSB.





**GENERAL**





Electronic
      Game Card, Inc. is a supplier of innovative games to the lottery, casino, and
      promotional industry worldwide. Our lead product is the EGC GameCard, a unique
      credit card-sized pocket game combining interactive capability with "instant
      win" excitement.





**THE
      COMPANY**





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.





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 a number markets for our GameCard
      product to either generate revenue directly or as a Sales Promotion aid
      including Lotteries ,both state sponsored and charity. Indian Gaming and Sales
      promotion, Poker and other casino table games, Bingo and Sport related games
      and
      promotions. Sales Promotion is being used to promote both on-line and off line
      activity.




**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.




On
      April
      27, 2007 (the “Effective Date”), Electronic Game Card, Inc. (the "Company" or
“EGC”) entered into a license agreement (the “License Agreement”) with
      Scientific Games International, Inc. ("SGI").





The
      parties agreed to terminate their joint venture agreement dated October 12,
      2004
      (the “Joint Venture Agreement”), settling outstanding amounts due to each party
      and owed by each party to the joint venture or to each other. The
      parties agreed to wind down the business of the joint venture for a reasonable
      period of time to complete written orders existing at June 30, 2007 without
      incurring further liabilities.





Pursuant
      to the License Agreement, SGI shall have the exclusive right, for a period
      of
      three years (subject to extension as discussed below), to produce, market,
      sell
      and distribute the Electronic GameCard TM in
      compliance with all applicable laws, to all public lotteries operated by
      national, state or provincial governmental entities or private entities
      operating such public lotteries on behalf of such governmental entities (the
      “Public Lotteries”) in the U.S., Canada, Mexicoand Italy. SGI also shall have a
      non-exclusive


license
      to produce, market, sell and distribute the Electronic
      GameCard TM worldwide during the ten year term of the License Agreement and any
      extensions thereof. For
      purposes of the License Agreement, the term “Public Lotteries” does not include
      lotteries conducted by charitable entities or lotteries conducted by other
      persons, entities or bodies that are not operated on behalf of national, state
      or provincial governmental entities. SGI agreed to package and label Electronic
      GameCard TM as requested by the Company at a reasonable rate of compensation to
      be mutually agreed by the parties. EGC retained
      all other rights with respect to the intellectual property which is the subject
      of the License Agreement. In connection with the sale, marketing, production
      and
      distribution of the Electronic GameCard TM, EGC shall provide SGI full access to
      EGC’s producers, manufacturers and suppliers of all components for and assembly
      of the Electronic GameCard TM





11




SGI
      may
      extend its exclusive rights with respect to “Public Lotteries” in the U.S.,
      Canada, Mexico and Italy during the term of the License Agreement on a yearly
      basis beyond the first three years of the License Agreement. To effect such
      an
      extension of exclusivity, SGI must pay to EGC in cash, , the sum of at least
      $500,000 in license fees for the year preceding the extension (including any
      topping off payment by SGI if license fees paid to EGC for such year otherwise
      would be less than $500,000).





During
      the term of the License Agreement, SGI
      has
      agreed to pay to the Company as a royalty fee (“Royalty Fee”) on a quarterly
      basis the greater of $.05 per Electronic GameCard TMGameCard TM and five
      percent (5%) of the gross selling price without deduction of taxes, expenses
      or
      promotions, for Electronic GameCard TMGameCards sold by SGI or its affiliates. SGI
      may
      not assign, sublicense or otherwise transfer the License Agreement to a third
      party without the prior written consent of EGC .





**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.





Within
      the expanding sales promotion market, the Poker sector has developed into a
      distinct and vibrant opportunity. Within the European, Australasian and South
      Africa geographic markets the playing and watching of Poker either at
      tournaments, on-line or on television has in the last 12 months has moved from
      a
      specialist area to mainstream entertainment and gaming.





The
      large
      numbers of Poker players and viewers is a substantial and dynamic opportunity
      for the gaming sector and the profile being generated by marketers is dynamic
      and increasing with the budget spend and volume of units distributed. EGC is
      currently working on developing specialist GameCards and promotions to extend
      interest and impact of Poker to maximize this opportunity.




**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 NIGC report that the market is now $25.1 billion dollars
      in
      revenue in 2006 with 415 casinos operated by more than 200 tribes across the
      United States.





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





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 TM 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.




12




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 TM that could
      only be played by activating the electronic circuit. Therefore, the Electronic
      GameCard TM was classified as a Class IIIgaming product.





EGC
      was
      advised that the application of a scratch panel to the Electronic GameCard
TM,
      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
TM
that was then sent to the NIGC General Counsel. NIGC then classified the scratch
      panel Electronic GameCard TM as an NIGC Class II gaming product. Class II is the
      appropriate classification because the Electronic GameCard TM 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 TM 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 TM 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.




**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.





We
      continue to develop and improve our Tic Tac Toe and Florida Dice games. 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,
      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; Crazy 8’s has now been produced forming part of our shelf game
      portfolio, and is available immediately to fulfil customers’ orders This is a
      variation on our hugely popular Lucky 7s game. 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 23 games
      in
      our portfolio.





13





**RESULTS
      OF OPERATIONS**





The
      company has recorded $1,785,330 of revenues this quarter compared with $331,522
      in the same period in 2006. Cost of product has reduced as volume has increased
      and Gross Profit was $1,294,830compared with $103,322 in 2006.





Sales
      and
      Marketing costs were $1,232 compared with $38,627 in the same period for 2006
      primarily due to staff economies and a reduction in attendance at trade shows
      and events during the period. General and Administration expenses were $146,326
      compared with $176,502 for the same period in 2006. This expense was lower
      than
      the comparable period as we were able to make further economies during the
      period. Consultancy costs were lower at $125,727 compared with $138,820 in
      the
      previous year. Salaries and payroll costs were $109,556 compared with $116,035
      in 2006 as costs were closely controlled in the period.




Operating
      profit excluding the interest charges was $911,989 compared with a loss of
      ($366,662) in the comparable period of 2006. Higher revenues and lower operating
      expenses combined to produce this improvement, Total comprehensive income was
      $817,628 compared with a comprehensive loss of ($1,934,095) for the same period
      in 2006.





For
      the
      nine months to September 30,2007 compared with the similar period in 2006
      Revenues increased from $684,834,to $4,250,224 and Gross Profit was $3,119,372
      up from $164,983 in 2006.





Selling
      and marketing expenses decreased from $88,688 to $5,203, General and
      Administrative expenses were also reduced from $525,736 to $431,540. Consultancy
      costs were lower at $282,585 compared with $455,543 and salaries & wages
      were reduced from $436,669 compared with $312,135. Total operating expenses
      have
      been reduced from $1,506,616 to $1,050,101 in the comparable
      period.





The
      company recorded an operating profit of $2,069,271 compared with a loss of
      ($1,341,633) in 2006. The company made a profit after interest and currency
      adjustments of $1,700,681 compared with ($5,682,167)


Earnings
      per share were $0.02 in 2007 compared with a loss of ($0.17) in 2006 for the
      three months and $0.04 in 2007 compared with a loss of ($0.23) in 2006 for
      the
      nine months.




**FINANCIAL
      RESOURCES**





Through
      April 6, 2005 the company sold $8,666,000 gross, $7,911,200 net, of its
      convertible promissory notes (the "Convertible Promissory Notes") to accredited
      investors in a private placement of securities (the "Private Placement") and
      subsequently converted to Series A Preferred Stock on November 29, 2006.





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 $1.01 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 stock. 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 $0.50 per share of Series A Preferred Stock, subject
      to
      adjustment, and shall be exercisable for a period of 5 years.




14




**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 June 30, 2007, 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.




**ITEM
      5.****OTHER
      INFORMATION**





None.




**ITEM
      6.****EXHIBITS
      AND REPORTS ON FORM 8-K**





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




ExhibitNumber
            
            Title
                of Document31.1
            
            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.





15




**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 23, 2007
            By:
                /s/ Lee ColeLee
                ColeActing
                President and Acting ChiefExecutive
                Officer








Date
                : November 23, 2007
            By:
                /s/ Linden BoyneLinden
                BoyneSecretary
                / Treasurer(Principal
                Financial Officer)


16