**U.S.
      SECURITIES AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**AMENDMENT
        NO. 1 TO 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 March 31, 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. Yes x  No o




Indicate
      by check mark whether the registrant is a shell company as defined in Rule
      12b-2
      of the Exchange Act.


Yes x  No o





State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of May 1, 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 three
      months ended March 31, 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.














EASTERN
        SERVICES HOLDINGS, INC.
   CONSOLIDATED
        FINANCIAL STATEMENTS
   AS
        OF MARCH 31, 2007
   
 
   EASTERN
        SERVICES HOLDINGS, INC.
   Consolidated
        Financial Statements Table of Contents
      **FINANCIAL
                  STATEMENTS**
              PageBALANCE
                    SHEET
              F-2STATEMENTS
                    OF OPERATIONS
              F-3STATEMENT
                    OF STOCKHOLDERS EQUITY
              F-4STATEMENTS
                    OF CASH FLOWS
              F-5NOTES
                  TO THE FIANNCIAL STATEMENTS
              F-6-F-10








F-1




**EASTERN
                    SERVICES HOLDINGS, INC.****BALANCE
                    SHEET****(unaudited)****As
                    of March 31, 2007 and December 31, 2006****ASSETS****CURRENT
                    ASSETS**
                
                **3/31/2007**
                
                **12/31/2006**Cash
                
                $
                28,338
                
                $
                43,825Accounts
                    Receivable
                
                
                700
                
                
                153,480Allowance
                    For Doubtful Accounts
                
                
                -
                
                
                (149,280
                )Advances
                
                
                -
                
                
                -Total
                    Current Assets
                
                
                29,038
                
                
                48,025**PROPERTY
                    AND EQUIPMENT**Equipment
                
                
                43,177
                
                
                40,591Less:
                    accumulated depreciation
                
                
                (38,260
                )
                
                (37,234
                )Total
                    Property and Equipment
                
                
                4,917
                
                
                3,357**TOTAL
                    ASSETS**
                
                $
                33,955
                
                $
                51,382**LIABILITIES
                    AND STOCKHOLDERS CAPITAL****CURRENT
                    LIABILITIES**Accounts
                    payable and accrued expenses
                
                $
                113,121
                
                $
                110,501Loan
                    payable - auto
                
                
                618
                
                
                1,354Total
                    Current Liabilities
                
                
                113,739
                
                
                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
                
                
                (120,784
                )
                
                (101,473
                )Total
                    Stockholders' Equity
                
                
                (79,784
                )
                
                (60,473
                )**TOTAL
                    LIABILITIES AND CAPITAL**
                
                $
                33,955
                
                $
                51,382


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








F-2






**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS****(unaudited)****For
                  the three months ending March 31, 2007 and 2006****3/31/2007**
              
              **3/31/2006****REVENUE**
              
              $
              -
              
              $
              -**COST
                  OF SERVICES**
              
              
              500
              
              
              13,300**GROSS
                  PROFIT OR (LOSS)**
              
              
              (500
              )
              
              (13,300
              )**GENERAL
                  AND ADMINISTRATIVE EXPENSES**
              
              
              17,268
              
              
              11,526**OPERATING
                  INCOME**
              
              
              (17,768
              )
              
              (24,826
              )**INCOME
                  TAX PROVISION**
              
              
              1,500
              
              
              -**INTEREST
                  EXPENSE**
              
              
              43
              
              
              62**INTEREST
                  INCOME**
              
              
              -
              
              
              -**NET
                  INCOME (LOSS)**
              
              $
              (19,311
              )
              $
              (24,888
              )**Earnings
                  (loss) per share, basic & diluted**
              
              $
              (0.01
              )
              $
              (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.






F-3






**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENT
                  OF STOCKHOLDERS EQUITY****(unaudited)****As
                  of March 31, 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 shareSubcription
                  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)
              
              
              -
              
              
              -
              
              
              -
              
              
              (19,311
              )
              
              (19,311
              )Balance,
                  March 31, 2007
              
              
              1,400,000
              
              
              1,400
              
              
              39,600
              
              
              (120,784
              )
              
              (79,784
              )




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






F-4




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF CASH FLOWS****(unaudited)****For
                  the three months ending March 31, 2007 and 2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES**
              
              **3/31/2007**
              
              **3/31/2006**Net
                  income (loss)
              
              $
              (19,311
              )
              $
              (24,888
              )Adjustments
                  to reconcile net income to net cashprovided
                  by (used in) operating activities:Depreciation
              
              
              1,028
              
              
              620(Increase)
                  Decrease in accounts receivable
              
              
              3,500
              
              
              -(Increase)
                  Decrease in advances and prepaid expenses
              
              
              -
              
              
              9,307Increase
                  (Decrease) in accounts payable
              
              
              2,619
              
              
              (26,784
              )Total
                  adjustments to net income
              
              
              7,147
              
              
              (16,857
              )Net
                  cash provided by (used in) operating activities
              
              
              (12,164
              )
              
              (41,745
              )**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
              
              
              (736
              )
              
              (687
              )Net
                  cash provided by (used in) financing activities
              
              
              (736
              )
              
              (687
              )**CASH
                  RECONCILIATION**Net
                  increase (decrease) in cash
              
              
              (15,487
              )
              
              (42,432
              )Cash
                  - beginning balance
              
              
              43,825
              
              
              85,868**CASH
                  BALANCE END OF PERIOD**
              
              $
              28,338
              
              $
              43,436




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






F-5




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.
   F-6
   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.
   F-7
  2.   Related
        Party Transactions:
  A
        stockholder may loan the Company working capital from time to time. At the
        year
        ending December 31, 2006 and 2005 the Company had no amounts owed.
  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:
  F-8
  
 Deferred
                  tax assets:Federal
                  net operating loss
              
              $
              15,705State
                  net operating loss
              
              
              4,591Total
                  deferred tax assets
              
              
              20,295Less
                  valuation allowance
              
              
              (20,295
              )$
              --
 
 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 March 31, 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 considers the balance due on this note as short term as its intension
        is
        to retire this debt during the year ending December 31, 2007.
   F-9
   9.  Stockholder
        Equity:
  The
            Company has authorized 500,000,000 shares of common stock at a par value
            of
            $.001 per share of which 1,400,000 shares have been
            issued.
  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.







F-10




**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
      carpe ts,
      restaurants, décor, 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 pro perty
      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.




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 March 31, 2007, we
      had
      cash of $28,338.




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 March 31, 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 March 31, 2007 were $29,038 which consisted mostly cash and total
      current liabilities as of March 31, 2007 were $113,739 which consisted of
      accounts payable and accrued expenses of $113,121 and a loan payable of $618.
      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 and we expect to retire
      the auto loan during the year 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 March 31, 2007 Compared to Three months ended March 31,
      2006




Revenues




Revenues
      were $0 for the three months ended March 31, 2006 and were $0 for the three
      months ended March 31, 2007.







Total
      Expenses




Cost
      of
      services decreased from $13,300 for the three months ended March 31, 2006 to
      $500 for the three months ended March 31, 2007 a decrease of $12,800 or 94%
      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 $11,526 for the three months
      ended March 31, 2006 to $17,768 for the three months ended March 31, 2007 an
      increase of $6,242 or 36%. The increase was a result of accounting fees paid
      for
      the audit.





Net
      Loss




Net
      loss
      decreased from $24,826 for the three months ended March 31, 2006 to a loss
      of
      $19,311 for the three months ended March 31, 2007. The decrease in losses was
      a
      result of decreased cost of services.





**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.




**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 March 31, 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 first 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 March 31, 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











**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 6, 2007