**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 September 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.


Yes o   Nox





State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of October 30, 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**






**EASTERN
                  SERVICES HOLDINGS, INC.****BALANCE
                  SHEET****(unaudited)****As
                  of September 30, 2007 and December 31, 2006****ASSETS****CURRENT
                  ASSETS**
              
              **9/30/2007**
              
              
              **12/31/2006**Cash
              
              $
              6,249
              
              
              $
              43,825Accounts
                  Receivable
              
              
              149,980
              
              
              
              153,480Allowance
                  For Doubtful Accounts
              
              
              (149,280
              )
              
              
              (149,280
              )Total
                  Current Assets
              
              
              6,949
              
              
              
              48,025**PROPERTY
                  AND EQUIPMENT**Equipment
              
              
              43,177
              
              
              
              40,591Less:
                  accumulated depreciation
              
              
              (39,697
              )
              
              
              (37,234
              )Total
                  Property and Equipment
              
              
              3,480
              
              
              
              3,357**TOTAL ASSETS**
              
              $
              10,429
              
              
              $
              51,382**LIABILITIES
                  AND STOCKHOLDERS CAPITAL****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued expenses
              
              $
              115,087
              
              
              $
              110,501Loan
                  payable - auto
              
              
              -
              
              
              
              1,354Total
                  Current Liabilities
              
              
              115,087
              
              
              
              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
              
              
              (145,658
              )
              
              
              (101,473
              )Total
                  Stockholders' Equity
              
              
              (104,658
              )
              
              
              (60,473
              )**TOTAL
                  LIABILITIES AND CAPITAL**
              
              $
              10,429
              
              
              $
              51,382











The
          accompanying footnotes are an integral part of these financial
          statements
 1





**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS****(unaudited)****For
                  the nine months ending September 30, 2007 and 2006****9/30/2007**
              
              
              **9/30/2006****REVENUE**
              
              $
              10,000
              
              
              $
              72,750**COST
                  OF SERVICES**
              
              
              800
              
              
              
              76,657**GROSS
                  PROFIT OR (LOSS)**
              
              
              9,200
              
              
              
              (3,907
              )**GENERAL
                  AND ADMINISTRATIVE EXPENSES**
              
              
              51,802
              
              
              
              84,040**OPERATING
                  INCOME**
              
              
              (42,602
              )
              
              
              (87,947
              )**INCOME
                  TAX PROVISION**
              
              
              1,500
              
              
              
              1,001**INTEREST
                  EXPENSE**
              
              
              84
              
              
              
              442**NET
                  INCOME (LOSS)**
              
              $
              (44,185
              )
              
              $
              (89,390
              )**Earnings
                  (loss) per share, basic & diluted**
              
              $
              (0.03
              )
              
              $
              (0.06
              )**Weighted
                  average number of common shares**
              
              
              1,400,000
              
              
              
              1,400,000






The
          accompanying footnotes are an integral part of these financial
          statements
 2




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS****(unaudited)****For
                  the three months ending September 30, 2007 and 2006****9/30/2007**
              
              
              **9/30/2006****REVENUE**
              
              $
              -
              
              
              $
              30,250**COST
                  OF SERVICES**
              
              
              -
              
              
              
              35,780**GROSS
                  PROFIT OR (LOSS)**
              
              
              -
              
              
              
              (5,530
              )**GENERAL
                  AND ADMINISTRATIVE EXPENSES**
              
              
              1,948
              
              
              
              55,185**OPERATING
                  INCOME**
              
              
              (1,948
              )
              
              
              (60,715
              )**INCOME
                  TAX PROVISION**
              
              
              -
              
              
              
              -**INTEREST
                  EXPENSE**
              
              
              -
              
              
              
              288**NET
                  INCOME (LOSS)**
              
              $
              (1,948
              )
              
              $
              (61,003
              )








The
          accompanying footnotes are an integral part of these financial
          statements
 3




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENT
                  OF STOCKHOLDERS EQUITY****(unaudited)****As
                  of September 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 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)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (44,185
              )
              
              
              (44,185
              )Balance,
                  September 30, 2007
              
              
              1,400,000
              
              
              $
              1,400
              
              
              $
              39,600
              
              
              $
              (145,658
              )
              
              $
              (104,658
              )






The
          accompanying footnotes are an integral part of these financial
          statements
 4




**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF CASH FLOWS****(unaudited)****For
                  the nine months ending September 30, 2007 and
                  2006****CASH
                  FLOWS FROM OPERATING ACTIVITIES**
              
              **9/30/2007**
              
              
              **9/30/2006**Net
                  income (loss)
              
              $
              (44,185
              )
              
              $
              (89,390
              )Adjustments
                  to
                  reconcile net income to net cashprovided
                  by  (used in) operating activities:Depreciation
              
              
              2,464
              
              
              
              1,239(Increase)
                  Decrease in accounts receivable
              
              
              3,500
              
              
              
              -(Increase)
                  Decrease in advances and prepaid expenses
              
              
              -
              
              
              
              9,307Increase
                  (Decrease) in accounts payable
              
              
              4,586
              
              
              
              52,935Increase
                  (Decrease) in wages payable
              
              
              -
              
              
              
              (6,417
              )Total
                  adjustments to net income
              
              
              10,550
              
              
              
              57,064Net
                  cash provided by (used in) operating activities
              
              
              (33,635
              )
              
              
              (32,326
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Cash
                  paid for fixed assets
              
              
              (2,587
              )
              
              
              (2,310
              )Net
                  cash flows provided by (used in) investing activities
              
              
              (2,587
              )
              
              
              (2,310
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Cash
                  paid on note payable - auto
              
              
              (1,354
              )
              
              
              (2,766
              )Net
                  cash provided by (used in) financing activities
              
              
              (1,354
              )
              
              
              (2,766
              )**CASH
                  RECONCILIATION**Net
                  increase (decrease) in cash
              
              
              (37,576
              )
              
              
              (37,402
              )Cash
                  -
                  beginning balance
              
              
              43,825
              
              
              
              85,868**CASH
                  BALANCE END OF PERIOD**
              
              $
              6,249
              
              
              $
              48,466










The
          accompanying footnotes are an integral part of these financial
          statements
 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.
   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.
   7
   2.   Related
        Party Transactions:
  A
        stockholder may loan the Company working capital from time to time. As of
        September 30, 2007, $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
              )$
              --
    8
 
 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.
   9
   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.










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.






11






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, decor, 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.




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 September 30, 2007,
      we
      had cash of $6,249.




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 September 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 September 30, 2007 were $6,949 which consisted of mostly cash
      and
      total current liabilities as of September 30, 2007 were $115,087 which consisted
      totally of accounts payable and accrued expenses.  A 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.****






12




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 September 30, 2007 Compared to Three months ended September 30,
      2006




Revenues




Revenues
      were $30,250 for the three months ended September 30, 2006 but for the three
      months ended September 30, 2007 the Company did not have any revenue due to
      lack
      of companies needing our services.




Total
      Expenses




Cost
      of
      services decreased from $35,780 for the three months ended September 30, 2006
      to
      $0 for the three months ended September 30, 2007 a decrease of $35,780 or 100%
      approximately. The decrease in cost of services was a result of no services
      being provided.




General
      and Administrative expenses which includes general office expenses, travel
      and
      entertainment, and professional fees decreased from $55,185 for the three months
      ended September 30, 2006 to $1,948 for the three months ended September 30,
      2007
      a decrease of $53,237 or 96.4%.  The decrease was a result of
      decreased business operations.





Net
      Loss




Net
      loss
      decreased from $61,003 for the three months ended September 30, 2006 to a loss
      of $1,948 for the three months ended September 30, 2007. The decrease in loss
      was a result of a decrease in operations resulting in a decrease in expenses
      and
      general and administrative costs.





**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.






13






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 September 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 third quarter of fiscal 2007 that has
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.







14






**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 September 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








15




**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:
      October  30, 2007