**U.S.
        SECURITIES AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
  **FORM
        10-QSB**
  **x**
              **QUARTERLY
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934**
  **For
        the quarterly period ended June 30, 2007**
  **o**
              **TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934**
  For
        the
        transition period from
  **Commission
        File #333-121764**
  **EASTERN
        SERVICES HOLDINGS, INC.**
 (Exact
        name of registrant as specified in its charter)
  **Delaware**
 (State
        or
        other jurisdiction of incorporation or organization)
  **30-0284778**
 (IRS
        Employer Identification Number)
  **1221
                  Ocean Avenue #1202, Santa Monica, California
                  90401**
              **90401**(Address
                  of principal executive offices )
              (Zip
                  Code)
  **(310)
        587-0029**
 (Registrant’s
        telephone no., including area code)
  (Former
        name, address and fiscal year, if changed since last report)
  Check
        whether the issuer (1) has filed
        all reports required to be filed by Section 13 or 15(d) of the Exchange Act
        during the preceding 12 months (or for such shorter period that the issuer
        was
        required to file such reports), and (2)has been subject to such filing
        requirements for the past 90 days. YesxNoo
  Indicate
        by check mark whether the registrant is a shell company as defined in Rule
        12b-2
        of the Exchange Act.
 Yesx                      Noo
 
 State
        the
        number of shares outstanding of each of the issuer’s classes of common equity,
        as of August 8, 2007: 1,400,000 shares of common stock.
    
      **EASTERN
        SERVICES HOLDINGS, INC.**
 **FINANCIAL
        STATEMENTS**
  **INDEX**
  **PART
        I-- FINANCIAL INFORMATION**
  Item
                  1. Financial Statements
  Item
                  2. Management’s Discussion and Analysis of Financial
                  Condition
  Item
                  3. Control and Procedures
  **PART
        II-- OTHER INFORMATION**
  Item
                  1. Legal Proceedings
  Item
                  2. Changes in Securities
  Item
                  3. Defaults Upon Senior Securities
  Item
                  4. Submission of Matters to a Vote of Security
                  Holders
  Item
                  5. Other Information
  Item
                  6. Exhibits and Reports on Form 8-K
  **SIGNATURE**
  **Item
        1.  Financial Information**
  BASIS
        OF
        PRESENTATION
  The
        accompanying reviewed financial statements are presented in accordance with
        generally accepted accounting principles for interim financial information
        and
        the instructions to Form 10-QSB and item 310 under subpart A of Regulation
        S-B.
        Accordingly, they do not include all of the information and footnotes required
        by generally accepted accounting principles for complete financial statements.
        In the opinion of management, all adjustments (consisting only of normal
        occurring accruals) considered necessary in order to make the financial
        statements not misleading, have been included. Operating results for the
        six
        months ended June 30, 2007 are not necessarily indicative of results that
        may be
        expected for the year ending December 31, 2007. The financial statements
        are
        presented on the accrual basis.
   
  2
 
  **EASTERN
        SERVICES HOLDINGS, INC.**
   **CONSOLIDATED
        FINANCIAL STATEMENTS**
   **AS
        OF JUNE 30, 2007**








3






**EASTERN
                  SERVICES HOLDINGS, INC.****BALANCE
                  SHEET****(unaudited)****As
                  of June 30, 2007 and December 31, 2006****ASSETS****CURRENT
                  ASSETS**
              
              **6/30/2007**
              
              
              **12/31/2006**Cash
              
              $
              7,289
              
              
              $
              43,825Accounts
                  Receivable
              
              
              149,980
              
              
              
              153,480Allowance
                  For
                  Doubtful Accounts
              
              
              (149,280
              )
              
              
              (149,280
              )Total
                  Current Assets
              
              
              7,989
              
              
              
              48,025**PROPERTY
                  AND EQUIPMENT**Equipment
              
              
              43,177
              
              
              
              40,591Less:
                  accumulated depreciation
              
              
              (39,288
              )
              
              
              (37,234
              )Total
                  Property and Equipment
              
              
              3,889
              
              
              
              3,357**TOTAL
                  ASSETS**
              
              $
              11,877
              
              
              $
              51,382**LIABILITIES
                  AND STOCKHOLDERS CAPITAL****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued expenses
              
              $
              114,587
              
              
              $
              110,501Loan
                  payable - auto
              
              
              -
              
              
              
              1,354Total
                  Current Liabilities
              
              
              114,587
              
              
              
              111,855**STOCKHOLDERS
                  EQUITY**Common
                  stock, Authorized: 500,000,000 at $0.001par
                  value, Issued: 1,400,000 and 1,400,000, respectively
              
              
              1,400
              
              
              
              1,400Additional
                  paid
                  in capital
              
              
              39,600
              
              
              
              39,600Retained
                  Deficit
              
              
              (143,710
              )
              
              
              (101,473
              )Total
                  Stockholders' Equity
              
              
              (102,710
              )
              
              
              (60,473
              )**TOTAL
                  LIABILITIES AND CAPITAL**
              
              $
              11,877
              
              
              $
              51,382




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






4




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS****(unaudited)****For
                  the six months ending June 30, 2007 and 2006****6/30/2007**
              
              
              **6/30/2006****REVENUE**
              
              $
              10,000
              
              
              $
              42,500**COST
                  OF SERVICES**
              
              
              800
              
              
              
              40,877**GROSS
                  PROFIT OR (LOSS)**
              
              
              9,200
              
              
              
              1,623**GENERAL
                  AND ADMINISTRATIVE EXPENSES**
              
              
              49,853
              
              
              
              28,855**OPERATING
                  INCOME**
              
              
              (40,653
              )
              
              
              (27,232
              )**INCOME
                  TAX PROVISION**
              
              
              1,500
              
              
              
              1,001**INTEREST
                  EXPENSE**
              
              
              84
              
              
              
              154**NET
                  INCOME (LOSS)**
              
              $
              (42,237
              )
              
              $
              (28,387
              )**Earnings
                  (loss) per share, basic & diluted**
              
              $
              (0.03
              )
              
              $
              (0.02
              )**Weighted
                  average number of common shares**
              
              
              1,400,000
              
              
              
              1,400,000






The
          accompanying footnotes are an integral part of these financial
          statements.
   5
  **EASTERN
                    SERVICES HOLDINGS, INC.****STATEMENTS
                    OF OPERATIONS****(unaudited)****For
                    the three months ending June 30, 2007 and 2006****6/30/2007**
                
                
                **6/30/2006****REVENUE**
                
                $
                10,000
                
                
                $
                42,500**COST
                    OF SERVICES**
                
                
                300
                
                
                
                27,577**GROSS
                    PROFIT OR (LOSS)**
                
                
                9,700
                
                
                
                14,923**GENERAL
                    AND ADMINISTRATIVE EXPENSES**
                
                
                32,585
                
                
                
                17,328**OPERATING
                    INCOME**
                
                
                (22,885
                )
                
                
                (2,405
                )**INCOME
                    TAX PROVISION**
                
                
                -
                
                
                
                1,001**INTEREST
                    EXPENSE**
                
                
                41
                
                
                
                93**NET
                    INCOME (LOSS)**
                
                $
                (22,926
                )
                
                $
                (3,499
                )
  The
              accompanying footnotes are an integral part of these financial
              statements.




6




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENT
                  OF STOCKHOLDERS EQUITY****(unaudited)****As
                  of June 30, 2007****SHARES
                  OF**
              
              
              
              
              
              **ADDITIONAL****COMMON**
              
              
              **PAR**
              
              
              **PAID
                  IN**
              
              
              **RETAINED**
              
              
              **TOTAL****STOCK**
              
              
              **VALUE**
              
              
              **CAPITAL**
              
              
              **DEFICIT**
              
              
              **CAPITAL**Balance,
                  December 31, 2002
              
              
              1,000,000
              
              
              $
              1,000
              
              
              -
              
              
              $
              (3,994
              )
              
              $
              (2,994
              )Net
                  income (loss)
              
              
              -
              
              
              
              -
              
              
              -
              
              
              
              (23,836
              )
              
              
              (23,836
              )Balance,
                  December 31, 2003
              
              
              1,000,000
              
              
              
              1,000
              
              
              
              -
              
              
              
              (27,830
              )
              
              
              (26,830
              )Common
                  stock subscribed during
              
              
              400,000
              
              
              
              400
              
              
              
              39,600
              
              
              
              
              
              
              
              40,000December
                  2004 at $0.10 per shareSubscription
                  receivable
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (40,000
              )Net
                  Income (loss)
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              17,912
              
              
              
              17,912Balance,
                  December 31, 2004
              
              
              1,400,000
              
              
              
              1,400
              
              
              
              39,600
              
              
              
              (9,918
              )
              
              
              (8,918
              )Subscription
                  receivable
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              40,000Net
                  Income (Loss)
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (1,280
              )
              
              
              (1,280
              )Balance,
                  December 31, 2005
              
              
              1,400,000
              
              
              
              1,400
              
              
              
              39,600
              
              
              
              (11,198
              )
              
              
              29,802Net
                  Income (loss)
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (90,275
              )
              
              
              (90,275
              )Balance,
                  December 31, 2006
              
              
              1,400,000
              
              
              
              1,400
              
              
              
              39,600
              
              
              
              (101,473
              )
              
              
              (60,473
              )Net
                  Income (loss)
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (42,237
              )
              
              
              (42,237
              )Balance,
                  June 30, 2007
              
              
              1,400,000
              
              
              $
              1,400
              
              
              $
              39,600
              
              
              $
              (143,710
              )
              
              $
              (102,710
              )




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






7




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF CASH FLOWS****(unaudited)****For
                  the six months ending June 30, 2007 and 2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES**
              
              **6/30/2007**
              
              
              **6/30/2006**Net
                  income (loss)
              
              $
              (42,237
              )
              
              $
              (28,387
              )Adjustments
                  to
                  reconcile net income to net cashprovided
                  by  (used in) operating activities:Depreciation
              
              
              2,056
              
              
              
              1,239(Increase)
                  Decrease in accounts receivable
              
              
              3,500
              
              
              
              -(Increase)
                  Decrease in advances and prepaid expenses
              
              
              -
              
              
              
              9,407Increase
                  (Decrease) in accounts payable
              
              
              4,085
              
              
              
              (5,919
              )Total
                  adjustments to net income
              
              
              9,641
              
              
              
              4,727Net
                  cash provided by (used in) operating activities
              
              
              (32,595
              )
              
              
              (23,660
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Cash
                  paid for fixed assets
              
              
              (2,587
              )
              
              
              -Net
                  cash flows provided by (used in) investing activites
              
              
              (2,587
              )
              
              
              -**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Cash
                  paid on note payable - auto
              
              
              (1,354
              )
              
              
              (1,718
              )Net
                  cash provided by (used in) financing activities
              
              
              (1,354
              )
              
              
              (1,718
              )**CASH
                  RECONCILIATION**Net
                  increase (decrease) in cash
              
              
              (36,536
              )
              
              
              (25,378
              )Cash
                  -
                  beginning balance
              
              
              43,825
              
              
              
              85,868**CASH
                  BALANCE END OF PERIOD**
              
              $
              7,289
              
              
              $
              60,490




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






8








EASTERN
        SERVICES HOLDINGS, INC.
  Notes
        to
        the financial statements
 
 
 1.   Summary
        of Significant Accounting Policies:
  Industry
        - Eastern Services Holdings, Inc. (the Company) was incorporated in the state
        of
        Delaware on November 5, 2004. At the time of incorporation the Company exchanged
        shares with Eastern Services Group, Inc. making Eastern Services Group, Inc.
        an
        acquired subsidiary. As the Company was the non-operating acquirer, for
        accounting purposes Eastern Services Group, Inc. is considered the accounting
        acquirer. The share exchange has been accounted for as a retroactive stock
        split. Eastern Services Group, Inc. was incorporated on February 27, 1998
        under
        the laws of the State of Nevada. The Company is headquartered in California.
        The
        Company provides state and local tax consultation and analysis to casinos
        in the
        Las Vegas metropolitan area. The Company does not provide filing services.
        The
        Company’s fiscal year end is December 31, a calendar year end.
  Significant
        Accounting Policies:
  The
        Company’s management has adopted the following accounting policies.
  Basis
        of Accounting - The Company’s financial statements are prepared in
        accordance with generally accepted accounting principles. The Company’s
        management has made all adjustments in their opinion that are necessary in
        order
        to make the financial statements not misleading.
  Estimates
        and adjustment-The Company’s management is of the opinion that all estimates
        and adjustment have been made in accordance with Generally Accepted Accounting
        Principle in order for the financial statements to not be
        misleading.
  Revenue
        Recognition - Revenues are recognized when the contingency requirements of
        the Company’s service contracts are fulfilled in a manner which leads to tax
        savings to the customer. If the Company is not successful in providing tax
        savings for property, sales and use tax then the customer does not have to
        pay
        for services provided. Proof of tax savings occurs when the state issues
        its
        assessment taxes in the month of June therefore revenue is not recognized
        until
        such time and payment of 50% of the tax savings is due from the customer
        at that
        time. In all contracts the Company acts as the principle and recognizes revenues
        on the gross method based on these tax savings which is not assured until
        the
        tax assessments are issued by the county. Cost of sales is recognized as
        the
        Company pays its employees for their work throughout the year regardless
        as to
        whether the Company is successful in providing tax savings.
  Cash
        and Cash Equivalents - The Company considers cash on hand and amounts on
        deposit with financial institutions which have original maturities of three
        months or less to be cash and cash equivalents.
   9
 EASTERN
          SERVICES HOLDINGS, INC.
  Notes
          to
          the financial statements
 Property
        and Equipment - Property and equipment are recorded at cost. Depreciation is
        computed using the straight line method over the estimated useful lives of
        the
        various classes of assets as follows:
  Equipment
              .......................................
              2
                  to 10 yearsFurniture
              .......................................
              5
                  to 10 years
  Maintenance
        and repairs, as incurred, are charged to expenses; betterments and renewals
        are
        capitalized in equipment accounts. Cost and accumulated depreciation applicable
        to items replaced or retired are eliminated from the related accounts; gain
        or loss on the disposition thereof is included as income.
  Income
        Taxes - The Company utilizes the asset and liability method to measure and
        record deferred income tax assets and liabilities. Deferred tax assets and
        liabilities reflect the future income tax effects of temporary differences
        between the financial statement carrying amounts of existing assets and
        liabilities and their respective tax bases and are measured using enacted
        tax
        rates that apply to taxable income in the years in which those temporary
        differences are expected to be recovered or settled. Deferred tax assets
        are
        reduced by a valuation allowance when, in the opinion of management, it is
        more
        likely than not that some portion or all of the deferred tax assets will
        not be
        realized.
  Earnings
        Per Share - Basic and diluted earnings per share is computed by dividing
        earnings available to stockholders by the weighted-average number of shares
        outstanding for the period as guided by the Financial Accounting Standards
        Board
        (FASB) under Statement of Financial Accounting Standards (SFAS) No. 128,
        “Earnings per Shares”. Diluted EPS reflects the potential dilution of securities
        that could share in the earnings. The Company used for years ending December
        31,
        2005 and 2004 earnings as the numerator and weighted average number of shares
        as
        disclosed in the statement of operations to calculate earnings per share.
        As the
        Company had a loss for the year ending December 31 2006, the option agreement
        that was entered into that year would not be dilutive.
  Concentrations
        of Credit Risk- Financial instruments which potentially expose the Company
        to concentrations of credit risk consist principally of operating demand
        deposit
        accounts. The Company’s policy is to place its operating demand deposit accounts
        with high credit quality financial institutions that are insured by the
        FDIC.
  Compensation
        in the form of stock - The Company used SFAS No.123, “Accounting For Stock
        Based Compensation,” for the year ending December 31, 2005. As required by a
        revision of this standard, the Company has adopted SFAS No. 123R to account
        for
        stock based compensation whereby through this adoption the Company accounts
        for
        amounts regarding stock based compensation at its expense instead of proforma
        results. For this transition the Company has elected the prospective method
        to
        account for the change.
   10
 EASTERN
          SERVICES HOLDINGS, INC.
  Notes
          to
          the financial statements
 2.   Related
        Party Transactions:
  A
        stockholder may loan the Company working capital from time to time. As of
        June
        30, 2006 $44,600 of stockholder loan payable was used as operating expenses
        and
        recorded in accounts payable and accrued expenses.
  3.   Accounts
        Receivable:
  The
        Company carries balances from time to time in accounts receivable for services
        performed. The Company’s management has established an allowance for doubtful
        accounts for those accounts that may not be collectible.
  4.   Use
        of Estimates:
  The
        preparation of financial statements in conformity with generally accepted
        accounting principles 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 financial statements
        and
        the reported amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates.
  5.
        Income Taxes:
  The
        Company has a net operating loss that may be used to offset future income
        for
        tax purposes for a period of 20 years from the date of inception of these
        losses. These losses were derived solely from operating activities. The net
        operating losses create a deferred tax asset as a benefit to the Company
        in the
        amount of $20,295. The Company has set up a valuation allowance of $20,295
        to
        reduce the deferred tax asset, as in the opinion of management, it is more
        likely than not that some portion or all of the deferred tax asset will not
        be
        realized.
  The
        income tax payable that was accrued for the quarters ending was offset by
        the
        Company’s net operating loss carryforward therefore the provisions for income
        tax in the income statement is an estimate of what may be the tax liability
        for
        the current year end.
  The
        availability of the Company’s net operating loss carryforwards are subject to
        limitation if there is a 50% or more positive change in the ownership of
        the
        Company’s stock. The provision for income taxes consists of the state minimum
        tax imposed on corporations.
 
 Deferred
        income taxes reflect the net tax effects of temporary differences between
        the
        carrying amounts of assets and liabilities for financial statement purposes
        and
        the amounts used for income tax purposes. Significant components of the
        Company's deferred tax liabilities and assets as of December 31, 2006 are
        as
        follows:
 
 Deferred
                  tax assets:Federal
                  net operating loss
              
              $
              15,705State
                  net operating loss
              
              
              4,591Total
                  deferred tax assets
              
              
              20,295Less
                  valuation allowance
              
              
              (20,295
              )$
              --
   11
 EASTERN
          SERVICES HOLDINGS, INC.
  Notes
          to
          the financial statements
 The
        Company has provided a 100% valuation allowance on the deferred tax assets
        at
        December 31, 2005 and the current quarter to reduce such asset to zero, since
        there is no assurance that the Company will generate future taxable income
        to
        utilize such asset. Management will review this valuation allowance requirement
        periodically and make adjustments as warranted.
 
 The
        reconciliation of the effective income tax rate to the federal statutory
        rate
        for the periods ended June 30, 2007 and December 31, 2006 is as
        follows:
  2007
              
              
              2006Federal
                  income tax rate
              
              
              (15.0
              %)
              
              
              (15.0
              %)State
                  tax, net of federal benefit
              
              
              (5.0
              %)
              
              
              (5.0
              %)Increase
                  in valuation allowance
              
              
              20.0
              %
              
              
              20.0
              %Effective
                  income tax rate
              
              
              0.0
              %
              
              
              0.0
              %
 
 6.   Accounts
        Payable and Accrued Expenses:
  Accounts
        payable and accrued expenses consist of trade payables from normal operations
        of
        the business.
  7.   Operating
        and Capital Lease Agreements:
   The
        Company has entered into a short-term lease for use of storage space. The
        contract is renewable every thirty days. The Company has not entered into
        any
        long-term leases.
  8.
        Note Payable:
  On
        May
        14, 2002 the Company entered into a loan agreement for an auto/truck in the
        amount of $20,000 for a 5-year period with a variable interest rate. During
        the
        year 2005, the rate averaged 11% and payments averaged $375 per month. The
        Company retired the debt on April 6, 2007.
  9.  Stockholder
        Equity:
  The
        Company has authorized 500,000,000 shares of common stock at a par value
        of
        $.001 per share of which 1,400,0000 shares have been issued.
   12
 EASTERN
          SERVICES HOLDINGS, INC.
  Notes
          to
          the financial statements
 
 Upon
          incorporation of the Company (November 5, 2004), 1,000,000 shares of common
          stock were issued in an exchange agreement for the 1,000 shares (100%)
          of the
          subsidiary, Eastern Service Group, Inc. Eastern Service Group is the accounting
          acquirer and therefore the share exchange was accounted as a retroactive
          share
          exchange.
  During
        November and December 2004 the Company undertook a private placement issuance,
        Regulation D Rule 506 offering, of 400,000 shares of common stock for a value
        of
        $40,000, or $.10 per share. The Company believes this offering is exempt
        from
        registration with the US Securities and Exchange Commission. These shares
        have
        been subscribed for and the funds received in January of 2005.
  On
        March
        1, 2005 the company entered into an option agreement with a company officer
        whereby the agreement calls for the purchase of 500,000 shares of common
        stock
        at an exercise price of $1.00 per share. The agreement will expire on March
        1,
        2007. The payment of these shares when exercised is due when the purchaser
        sells
        these common shares. There is no compensation, repurchase or awards with
        regard
        to this option agreement.
  10.  Employment
        Contract and Incentive Commitments:
  The
        Company has no employment contracts and incentive commitments. The Company’s
        policy on compensation to Mr. Carrigan, its sole employee, is based upon
        a
        verbally agreed amount of $60,000 per year. For the year ended December 31,
        2006
        the Company accrued $45,000 in wages.
  11.  Required
        Cash Flow Disclosure for Interest and Taxes Paid:
  The
        Company paid interest during the years ending December 31, 2006 and 2005
        in the
        amounts of $672 and $0, respectively. The Company paid income taxes during
        the
        years ending December 31, 2006 and 2005 in the amount of $1,001 and $169,
        respectively.
  12.  Contingent
        Liabilities:
  Currently
        the Company has not identified any contingent liabilities that may be
        due.




13




**Item
        2. Management’s Discussion and Analysis or Plan of
        Operation**
  The
        following discussion of the financial condition and results of operations
        should
        be read in conjunction with the consolidated financial statements and related
        notes thereto. The following discussion contains certain forward-looking
        statements that involve risks and uncertainties. Our actual results could
        differ
        materially from those discussed therein. Factors that could cause or contribute
        to such differences include, but are not limited to, risks and uncertainties
        related to the need for additional funds, the rapid growth of the operations
        and
        our ability to operate profitably a number of new projects.
  **Overview**
  We
        were
        incorporated under the laws of the State of Delaware on November 5, 2004.
        On
        November 9, 2004, pursuant to a Stock Purchase Agreement and Share Exchange,
        Eastern Services Group, Inc. became our wholly owned subsidiary. The purpose
        for
        this reorganization with Eastern Services Group, Inc. was to obtain an operating
        company which we believed has a successful business plan. Until this
        reorganization our activities had been limited to actions related to our
        organization, and we conducted virtually no business operations.
  Our
        subsidiary, Eastern Services Group, Inc. (“ESG”), was established in the State
        of Nevada in February 1998. Through our subsidiary, we provide state and
        local
        tax consultation and analysis to casinos in the Las Vegas metropolitan area.
        We
        do not provide filing services nor do we perform CPA services. We provide
        consulting services based on risk assessment via telephone or in a face-to-face
        setting.
  The
        core
        services suite provided by Eastern Services Group, Inc. is traditional tax
        analysis, preparation, and business consulting services to clients operating
        casinos in the Las Vegas, Nevada metropolitan area. ESG, Inc. concentrates
        on
        analysis of sales and use taxes, real property taxes, and personal property
        tax.
 
 At
        competitive prices, Eastern Services Group works with clients to minimize
        tax
        exposure and ensure that each filing adheres to all areas of local and state
        laws. With the highest degree of integrity, ESG, Inc., conducts preliminary
        interviews with clients to ensure a comprehensive analysis and assessment
        of tax
        liability with respect to the specific jurisdiction is provided.
  Through
        in-depth evaluation and assessment, ESG, Inc. makes significant recommendations
        to clients to ensure local and state levied taxes are accurate, accounting
        and
        tax filing procedures afford viable tax savings, and records and accounts
        are
        correctly maintained to prevent unnecessary audits.
  ESG,
        Inc.
        has developed an effective pricing model. Approximately 95% of the majority
        of
        contracts is contingent upon the tax savings incurred as a result of services
        rendered by ESG. Typically, ESG receives 50% of the tax savings resulting
        directly from the assessment and analysis provided. The remaining 5% of the
        total contract is a flat or hourly fee to address provisional administrative
        functions associated with the project.
  Market
        Trends
  With
        real
        estate audits on the decline, property audits are increasing due to the
        renovations of hotel casinos trying to maintain market share in the gaming
        industry. This gives us the opportunity for audits based on the new assets
        purchased.
        For example, as properties spend on capital improvements such as carpets,
        restaurants, dйcor, and infrastructure, the overall value of the property is
        increased. Also, when casinos are sold or merge, the value of the properties
        surrounding such casinos increase as well. When property increases in
        value, the owner of such property is required to pay additional tax. As a
        means
        to limit additional tax exposure, casinos seek our services to help them
        identify ways in which they can limit such increases in taxes. Thus, when
        hotel
        casinos make improvements, they seek our services to help reduce their tax
        liability.
  In
        2005,
        the State of Nevada imposed a cap on the amount of taxes that a property
        would
        have to pay if the property increased in value. In 2005, the cap was set
        at 8%.
        The cap was instituted as temporary relief for business and residential markets.
        The cap rate effectively limited the amount of real estate tax liability
        that a
        casino could incur. Because real estate tax liability was capped, casinos
        were
        less inclined to seek tax burden relief. Therefore, in 2005, the cap limited
        our
        revenue streams because of the decrease in demand.
  Although
        the 8% cap limited the revenue stream for all periods during the year ended
        2005, the State of Nevada may adjust the cap during the year ending 2006.
        At
        this point we cannot determine what cap rate may be applied by the State
        of
        Nevada or whether there will be a cap rate in the future.
   14
  A
        lower
        cap rate means clients will be less inclined to seek our services and therefore
        our revenues would decrease. However, a higher cap rate, or the elimination
        of
        the cap rate altogether, would result in greater demand for our services
        because
        clients would have more incentive to seek tax burden relief. An increase
        in
        demand for our services could result in an increase in revenue.
  Key
        Metrics
  We
        generate revenue when we achieve a reduction in the property tax value of
        our
        clients. Our revenue derives from the spread between the original assessment
        by
        the State and the adjusted assessment we determine based on our audit.
        Typically, we ask for 50% of such savings. Thus, our revenues are proportionally
        related to the amount of savings we achieve for our clients. We consider
        audits
        which result in savings for our clients to be “successful audits.”
  We
        focus
        on the bottom line profits of the company and cost of achieving them, as
        well as
        cost of obtaining new clients. Operating performance is measured by maintaining
        relationships with our existing clients and ensuring that we save them money.
        Our strength and weakness is dependant upon overall real estate values in
        the
        gaming industry as well as the rate of mergers and acquisitions that may
        drive
        up the value of existing entities. Therefore when real estate values and
        the
        level of mergers and acquisitions activities rise, our business stands to
        gain
        as well thereby increasing revenue. When those indicators fall, demand for
        our
        services falls as well.
  **Liquidity
        and Capital Resources**
  We
        have
        historically satisfied our cash requirements through revenues, short term
        financings, and issuance of common stock for cash. We anticipate that cash
        requirements will continue to increase as we continue to expend resources
        to
        build infrastructure, develop a business plan and establish a marketing network,
        customer support and administrative organizations. As of June 30, 2007, we
        had
        cash of $7,289.
  We
        anticipate that we will need $50,000 to cover budgeted operating expenditures
        and offering expenses for the next twelve months from the date of this
        prospectus. The Company is operating at a net loss as of June 30, 2007 and
        therefore our cash reserves plus contractually committed capital are not
        sufficient to fund our planned business operations for a period of the next
        twelve months.
  In
        the
        interim, we will continue to pursue additional capital investment. Current
        assets as of June 30, 2007 were $7,989 which consisted mostly cash and total
        current liabilities as of June 30, 2007 were $114,587 which consisted totally
        of
        accounts payable and accrued expenses.  The loan was entered on May
        14, 2002 for an auto purchase in the amount of $20,000 for a 5 year period
        with
        a variable interest rate. During the year 2005 the rate averaged 5.5% and
        payments are $375 per month.  The company paid in full and retired the
        debt on April 6, 2007.****
  Because
        our current assets are not sufficient to cover our current liabilities, we
        expect to be able to continue operations for at least the next twelve months
        only if we continue to generate significant revenues or raise additional
        funding. However, there is risk if the company does not generate significant
        revenues that it will not be able to cover its costs. The company’s major
        stockholder will fund any shortfalls in capital and additional expenses in
        the
        form of accounting and legal fees for the company to become a reporting company.
        We will also need to seek both private and public equity markets to support
        our
        ongoing operations. We have financed our growth and cash requirements through
        operations, related party debt and small private placements of
        equity.
  By
        becoming a publicly reporting company, we expect an increase in our audit,
        accounting, and legal fees. As a fully reporting company pursuant to the
        Securities Exchange Act of 1934, we will be required to file quarterly, annual,
        and other periodic reports. As such, we will require the assistance of our
        legal
        counsel to prepare and file such reports and our independent auditors to
        prepare
        or review financial statements in connection with such reports. In addition,
        we
        will retain an EDGAR service to submit such filings to the Securities and
        Exchange Commission. We anticipate the approximate costs of being a publicly
        reporting company to be the following per quarter (or about $24,000 per
        year):
  Legal:
              
              $
              2,500Accounting:
              
              $
              2,500Filings:
              
              $
              1,000
 
 **Results
        from Operations**
  Three
        Months Ended June 30, 2007 Compared to Three months ended June 30,
        2006
   15
   Revenues
  Revenues
        were $42,500 for the three months ended June 30, 2006 and were $10,000 for
        the
        three months ended June 30, 2007 due to lack of companies needing our
        services.
  Total
        Expenses
  Cost
        of
        services decreased from $40,877 for the three months ended June 30, 2006
        to $800
        for the three months ended June 30, 2007 a decrease of $40,077 or 98%
        approximately. The decrease in cost of services was a result of no payments
        to
        outside consultants as well as no salaries being accrued for Mr. Richard
        Carrigan.
  General
        and Administrative expenses which includes general office expenses, travel
        and
        entertainment, and professional fees increased from $28,855  for the
        three months ended June 30, 2006 to $49,853 for the three months ended June
        30,
        2007 an increase of $20,998 or42%. The increase was a result of accounting
        fees
        and legal fees paid for the audit.
 
 Net
        Loss
  Net
        loss
        increased from $28,387 for the three months ended June 30, 2006 to a loss
        of
        $42,237 for the three months ended June 30, 2007. The increase in loss was
        a
        result of a decrease in revenues and an increase in general and administrative
        expenses.
 
 **Critical
        Accounting Policies**
  Our
        discussion and analysis of results of operations and financial condition
        are
        based upon our consolidated financial statements, which have been prepared
        in
        accordance with accounting principles generally accepted in the United States
        of
        America. The preparation of these consolidated financial statements requires
        us
        to make estimates and judgments that affect the reported amounts of assets,
        liabilities, revenues and expenses, and related disclosure of contingent
        assets
        and liabilities. We base our estimates on historical experience and on various
        other assumptions that are believed to be reasonable under the circumstances,
        the results of which form the basis for making judgments about the carrying
        values of assets and liabilities that are not readily apparent from other
        sources. Actual results may differ from these estimates under different
        assumptions or conditions.
  We
        considered the quality and variability of information regarding the financial
        condition and operating performance that may have changed in the past and
        future
        that may have a material effect and has quantified them where possible.
        Specifically we considers risk of variability with changes in contract which
        may
        affect the recognition of income and also the possibility of changes in the
        tax
        code which may affect the long term rates of return.
  We
        consider the following historical trends and future trends of the company
        as
        well as risks that are present within the industry. We believe that unless
        the
        current 8% Cap is lifted, the downward trend may continue. If tax legislation
        changes to relieve the cap, the company’s services may be in more demand. We
        provide property tax analysis and sales and use tax analysis to the casino
        industry. Revenues are recognized when the contingency requirements of the
        company service contracts are fulfilled in a manner which leads to savings
        to
        the customer.
 
 **Recent
        Accounting Pronouncements**
  SFAS
        155,
        Accounting for Certain Hybrid Financial Instruments and SFAS 156, Accounting
        for
        Servicing of Financial Assets were recently issued. SFAS 155 and 156 have
        no
        current applicability to us and have no effect on the financial
        statements.
 
 **Off-Balance
        Sheet Arrangements**
  We
        do not
        have any off-balance sheet transactions.
   16
   **Item
        3.**                                **Controls
        and
        Procedures**
  Under
        the
        supervision and with the participation of our management, including our
        principal executive officer and principal financial officer, we conducted
        an
        evaluation of our disclosure controls and procedures, as such term is defined
        under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities
        Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2007. Based
        on
        this evaluation, our principal executive officer and principal financial
        officer
        have concluded that our disclosure controls and procedures are effective
        to
        ensure that information required to be disclosed by us in the reports we
        file or
        submit under the Exchange Act is recorded, processed, summarized, and reported
        within the time periods specified in the Securities and Exchange Commission’s
        rules and forms and that our disclosure and controls are designed to ensure
        that
        information required to be disclosed by us in the reports that we file or
        submit
        under the Exchange Act is accumulated and communicated to our management,
        including our principal executive officer and principal financial officer,
        or
        persons performing similar functions, as appropriate to allow timely decisions
        regarding required disclosure.
  There
        were no changes (including corrective actions with regard to significant
        deficiencies or material weaknesses) in our internal controls over financial
        reporting that occurred during the second quarter of fiscal 2007 that has
        materially affected, or is reasonably likely to materially affect, our internal
        control over financial reporting.
 
 **PART
        II - OTHER INFORMATION**
  
 Item
        1.  Legal
        Proceedings.
 
 The
        Company is currently not a party to any pending legal proceedings and no
        such
        action by, or to the best of its knowledge, against the Company has been
        threatened.
  Item
        2.  Changes
        in
        Securities.
 
 None
 
 Item
        3. Defaults
        Upon Senior
        Securities.
 
 None
 
 Item
        4. Submission
        of Matters
        to a Vote of Security Holders.
 
 No
        matter
        was submitted during the quarter ending June 30, 2007, covered by this report
        to
        a vote of the Company’s shareholders, through the solicitation of proxies or
        otherwise.
  Item
        5.  Other
        Information.
 
 None
 
 Item
        6.Exhibits
        and Reports of Form
        8-K.
 
 **(a)**   **Exhibits**
 
 31.1
        Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002
 32.1
        Certification pursuant to Section 906 of Sarbanes Oxley Act of
        2002
  **(b)**    **Reports
        of Form
        8-K**
 
 None
   17
  **SIGNATURES**
  In
        accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
        this report to be signed on its behalf by the undersigned, there unto duly
        authorized.
  **EASTERN
                  SERVICES HOLDINGS, INC.**
  By:
              /*s/
                  Akhee Rahman*Akhee
                  Rahman,President,
                  Chief Executive Officer,Chief
                  Financial Officer, Secretary &Director
   Date:
        August 9, 2007