================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q
           [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended: June 30, 1998
                                       OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934
              For the transition period from _________ to _________

                         Commission file number: 1-13794
                       TRUMP HOTELS & CASINO RESORTS, INC.
             (Exact name of registrant as specified in its charter)

                DELAWARE                                        13-3818402
     (State or other jurisdiction of                         (I.R.S. Employer
     incorporation or organization)                         Identification No.)
             2500 Boardwalk
        Atlantic City, New Jersey                                  08401
(Address of principal executive offices)                        (Zip Code)

                                 (609) 441-6060
              (Registrant's telephone number, including area code)
                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)

                        Commission file number: 33-90786
                  TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
             (Exact name of registrant as specified in its charter)

                DELAWARE                                         13-3818407
     (State or other jurisdiction of                         (I.R.S. Employer
     incorporation or organization)                         Identification No.)
             2500 Boardwalk
        Atlantic City, New Jersey                                  08401
(Address of principal executive offices)                        (Zip Code)

                                 (609) 441-6060
              (Registrant's telephone number, including area code)
                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)

                        Commission file number: 33-90786
                   TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
             (Exact name of registrant as specified in its charter)

                DELAWARE                                        13-3818405
     (State or other jurisdiction of                         (I.R.S. Employer
     incorporation or organization)                         Identification No.)
             2500 Boardwalk
        Atlantic City, New Jersey                                  08401
(Address of principal executive offices)                        (Zip Code)

                                 (609) 441-6060
              (Registrant's telephone number, including area code)
                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate by check mark whether the  registrants  (1) have filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrants  were required to file such  reports),  and (2) have been subject to
such filing requirements for the past 90 days. Yes _X_ No ___

     The number of outstanding shares of Common Stock, par value $.01 per share,
of Trump Hotels & Casino Resorts, Inc. as of August 14, 1998 was 22,195,256.

     The number of  outstanding  shares of Class B Common Stock,  par value $.01
per share,  of Trump  Hotels & Casino  Resorts,  Inc.  as of August 14, 1998 was
1,000.

     The number of outstanding shares of Common Stock, par value $.01 per share,
of Trump Hotels & Casino Resorts Funding, Inc. as of August 14, 1998 was 100.

================================================================================

<PAGE>

<TABLE>

                                           TRUMP HOTELS & CASINO RESORTS, INC.,
                                       TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                                            AND
                                        TRUMP HOTELS & CASINO RESORTS FUNDING, INC.


                                                    INDEX TO FORM 10-Q

<CAPTION>

PART I--FINANCIAL INFORMATION

                                                                                                                Page No. 
                                                                                                                -------- 
<S>                                                                                                                 <C>
ITEM 1--Financial Statements                                                                                    
         Condensed Consolidated Balance Sheets of Trump Hotels & Casino Resorts, Inc.
         as of June 30, 1998 (unaudited) and December 31, 1997................................................       1

         Condensed Consolidated Statements of Operations of Trump Hotels & Casino Resorts, Inc.
         for the Three Months and Six Months Ended June 30, 1998 and 1997 (unaudited).........................       2

         Condensed Consolidated Statement of Stockholders' Equity of Trump Hotels & Casino Resorts, Inc.
         for the Six Months Ended June 30, 1998  (unaudited)..................................................       3

         Condensed Consolidated Statements of Cash Flows of Trump Hotels & Casino Resorts, Inc.
         for the Six Months Ended June 30, 1998 and 1997 (unaudited)..........................................       4

         Condensed Consolidated Balance Sheets of Trump Hotels & Casino Resorts Holdings, L.P.
         as of June 30,  1998 (unaudited) and December 31, 1997...............................................       5

         Condensed Consolidated Statements of Operations of Trump Hotels & Casino Resorts Holdings, L.P.
         for the Three and Six Months Ended June 30, 1998 and 1997 (unaudited)................................       6

         Condensed Consolidated Statement of Partners' Capital of Trump Hotels & Casino Resorts
         Holdings, L.P.  for the Six Months Ended June 30, 1998 (unaudited)...................................       7

         Condensed Consolidated Statements of Cash Flows of Trump Hotels & Casino Resorts Holdings, L.P.
         for the Six Months Ended June 30, 1998 and 1997 (unaudited)..........................................       8

         Notes to Condensed Consolidated Financial Statements of Trump Hotels & Casino Resorts, Inc.,
         Trump Hotels & Casino Resorts Holdings, L.P. and Trump Hotels & Casino Resorts
         Funding, Inc.  (unaudited)...........................................................................       9

ITEM 2 -- Management's Discussion and Analysis of Financial Condition and Results
             of Operations....................................................................................       12

ITEM 3 -- Quantitative and Qualitative Disclosures About Market Risk..........................................       18
</TABLE>






<PAGE>


<TABLE>
                                                 TRUMP HOTELS & CASINO RESORTS, INC.
                                            TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                                                 AND
                                             TRUMP HOTELS & CASINO RESORTS FUNDING, INC.

                                                      INDEX TO FORM 10-Q CONT'D

<CAPTION>


                                                                                                                Page No. 
                                                                                                                -------- 
<S>                                                                                                                 <C>
PART II -- OTHER INFORMATION

ITEM 1 -- Legal Proceedings...................................................................................       19
ITEM 2 -- Changes in Securities and Use of Proceeds...........................................................       20
ITEM 3 -- Defaults Upon Senior Securities.....................................................................       20
ITEM 4 -- Submission of Matters to a Vote of Security Holders.................................................       20
ITEM 5 -- Other Information...................................................................................       20
ITEM 6 -- Exhibits and Reports on Form 8-K....................................................................       20

SIGNATURES

Signature -- Trump Hotels & Casino Resorts, Inc...............................................................       21
Signature -- Trump Hotels & Casino Resorts Holdings, L.P......................................................       22
Signature -- Trump Hotels & Casino Resorts Funding, Inc.......................................................       23
</TABLE>



<PAGE>

                       TRUMP HOTELS & CASINO RESORTS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)

<TABLE>
<CAPTION>
                                                       ASSETS
                                                                                    June 30,     December 31,
                                                                                     1998           1997 
                                                                                  -----------    -----------
                                                                                   (unaudited)
<S>                                                                               <C>            <C>        
CURRENT ASSETS:
  Cash and cash equivalents ...................................................   $   133,904    $   140,328
  Receivables, net ............................................................        71,910         68,075
  Inventories .................................................................        12,205         13,011
  Due from affiliates, net ....................................................         1,402         13,173
  Prepaid expenses and other current assets ...................................        19,560         13,892
                                                                                  -----------    -----------
        Total Current Assets ..................................................       238,981        248,479

INVESTMENT IN BUFFINGTON HARBOR, L.L.C ........................................        41,858         43,535
INVESTMENT IN TRUMP'S CASTLE PIK NOTES ........................................        58,500         53,381
PROPERTY AND EQUIPMENT, NET ...................................................     1,978,743      2,004,751
CASH RESTRICTED FOR FUTURE CONSTRUCTION .......................................        10,023         13,000
DEFERRED BOND AND LOAN ISSUANCE COSTS, NET ....................................        42,483         45,071
DUE FROM AFFILIATES ...........................................................         3,634          3,493
OTHER ASSETS ..................................................................        66,894         60,659
                                                                                  -----------    -----------

Total Assets ..................................................................   $ 2,441,116    $ 2,472,369
                                                                                  ===========    ===========

                                          LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current maturities of long-term debt ........................................   $    15,444    $    21,890
  Accounts payable and accrued expenses .......................................       116,596        109,489
  Accrued interest payable ....................................................        30,687         29,038
                                                                                  -----------    -----------
    Total Current Liabilities .................................................       162,727        160,417

LONG-TERM DEBT, net of current maturities .....................................     1,831,885      1,817,569
OTHER LONG-TERM LIABILITIES ...................................................        16,607         17,080
                                                                                  -----------    -----------
Total Liabilities .............................................................     2,011,219      1,995,066
                                                                                  -----------    -----------

MINORITY INTEREST .............................................................       131,921        148,418

STOCKHOLDERS' EQUITY:
  Common Stock, $.01 par value, 75,000,000 shares authorized,
   24,206,756 issued and outstanding ..........................................           242            242
  Class B Common Stock, $.01 par value, 1,000 shares
   authorized, issued and outstanding .........................................            --             --
  Additional Paid in Capital ..................................................       455,645        455,645
  Accumulated Deficit .........................................................      (138,376)      (109,726)
  Less treasury stock, 2,011,500 and 1,706,500 shares of THCR Common Stock,
     respectively, at cost ....................................................       (19,535)       (17,276)
                                                                                  -----------    -----------
Total Stockholders' Equity ....................................................       297,976        328,885
                                                                                  -----------    -----------

Total Liabilities and Stockholders' Equity ....................................   $ 2,441,116    $ 2,472,369
                                                                                  ===========    ===========

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

                                                        1
</TABLE>

<PAGE>

<TABLE>

                                            TRUMP HOTELS & CASINO RESORTS, INC.
                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                                        (unaudited)
                                         (dollars in thousands, except share data)


<CAPTION>
                                                               Three Months Ended              Six Months Ended
                                                                    June 30,                        June 30,     
                                                          ----------------------------    ----------------------------
                                                              1998            1997            1998            1997
                                                          ------------    ------------    ------------    ------------
<S>                                                       <C>             <C>             <C>             <C>         
REVENUES:
   Gaming .............................................   $    315,316    $    336,686    $    607,529    $    653,575
   Rooms ..............................................         23,613          26,178          44,089          47,803
   Food and Beverage ..................................         35,845          38,906          69,516          73,839
   Other ..............................................         10,751          12,225          20,424          21,942
                                                          ------------    ------------    ------------    ------------
   Gross Revenues .....................................        385,525         413,995         741,558         797,159
   Less -- Promotional allowances .....................         41,333          45,971          80,893          86,893
                                                          ------------    ------------    ------------    ------------
   Net Revenues .......................................        344,192         368,024         660,665         710,266
                                                          ------------    ------------    ------------    ------------

COSTS AND EXPENSES:
   Gaming .............................................        201,130         212,572         387,472         411,375
   Rooms ..............................................          8,161           8,030          15,269          15,130
   Food and Beverage ..................................         13,446          12,809          24,210          24,220
   General and Administrative .........................         63,944          68,784         129,899         136,404
   Depreciation and Amortization ......................         20,462          19,203          41,053          46,275
                                                          ------------    ------------    ------------    ------------
                                                               307,143         321,398         597,903         633,404
                                                          ------------    ------------    ------------    ------------
   Income from operations .............................         37,049          46,626          62,762          76,862
                                                          ------------    ------------    ------------    ------------

NON-OPERATING INCOME AND (EXPENSES):
   Interest income ....................................          2,038           1,237           5,147           3,202
   Interest expense ...................................        (55,667)        (52,671)       (111,287)       (105,270)
   Other non-operating expense ........................             11              --            (286)             --
                                                          ------------    ------------    ------------    ------------
                                                               (53,618)        (51,434)       (106,426)       (102,068)
                                                          ------------    ------------    ------------    ------------

Loss before equity in loss of Buffington Harbor, L.L.C 
   and Minority Interest ..............................        (16,569)         (4,808)        (43,664)        (25,206)
Equity in loss of Buffington Harbor, L.L.C ............           (742)         (1,092)         (1,483)         (1,730)
                                                          ------------    ------------    ------------    ------------

Loss before income taxes and minority interest ........        (17,311)         (5,900)        (45,147)        (26,936)
Income tax benefit ....................................             --             883              --              --
Minority Interest .....................................          6,331           1,810          16,497           9,785
                                                          ------------    ------------    ------------    ------------

NET LOSS ..............................................   $    (10,980)   $     (3,207)   $    (28,650)   $    (17,151)
                                                          ============    ============    ============    ============

Basic loss per share ..................................   $       (.49)   $       (.14)   $      (1.29)   $       (.74)
                                                          ============    ============    ============    ============

Weighted average shares ...............................     22,195,256      22,679,097      22,212,107      23,094,469
                                                          ============    ============    ============    ============

Dilutive loss per share ...............................   $       (.49)   $       (.14)   $      (1.29)   $       (.74)
                                                          ============    ============    ============    ============

Weighted average shares ...............................     22,195,256      22,679,097      22,212,107      23,094,469
                                                          ============    ============    ============    ============


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

 
                                                     2
</TABLE>

<PAGE>

<TABLE>

                                                 TRUMP HOTELS & CASINO RESORTS, INC.
                                      CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                               FOR THE SIX MONTHS ENDED JUNE 30, 1998
                                                             (unaudited)
                                                       (dollars in thousands)


<CAPTION>
                                    Number of Shares
                               -----------------------      Common       Additional
                                              Class B        Stock         Paid in      Accumulated       Treasury
                                 Common       Common         Amount        Capital        Deficit          Stock           Total
                               ----------   ----------     ----------     ----------     ----------      ----------      ----------
<S>                            <C>               <C>       <C>            <C>            <C>             <C>             <C>       
Balance, December 31, 1997     24,206,756        1,000     $      242     $  455,645     $ (109,726)     $  (17,276)     $  328,885

Purchase of treasury
 stock, 305,000 shares of
 THCR Common Stock,
 at cost .................             --           --             --             --             --          (2,259)         (2,259)

Net Loss .................             --           --             --             --        (28,650)             --         (28,650)
                               ----------   ----------     ----------     ----------     ----------      ----------      ----------

Balance, June 30, 1998 ...     24,206,756        1,000     $      242     $  455,645     $ (138,376)     $  (19,535)     $  297,976
                               ==========   ==========     ==========     ==========     ==========      ==========      ==========

                   The accompanying notes are an integral part of this condensed consolidated financial statement.


                                                                  3
</TABLE>

<PAGE>

<TABLE>

                                         TRUMP HOTELS & CASINO RESORTS, INC.
                                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
                                     THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                                     (unaudited)
                                               (dollars in thousands)

<CAPTION>
                                                                                       1998           1997
                                                                                     ---------      ---------
<S>                                                                                  <C>            <C>       
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss .....................................................................     $ (28,650)     $ (17,151)
  Adjustments to reconcile net loss to net cash flows from operating activities:
    Issuance of debt in exchange for accrued interest ..........................         5,612          4,908
    Equity in loss of Buffington Harbor, L.L.C .................................         1,483          1,730
    Depreciation and amortization ..............................................        41,053         46,275
    Payment-In-Kind interest in Castle PIK Notes ...............................        (5,119)        (4,404)
    Minority interest in net loss ..............................................       (16,497)        (9,785)
    Accretion of discounts on mortgage notes ...................................         2,198          1,543
    Amortization of deferred loan costs ........................................         4,176          3,955
    Provision for losses on receivables ........................................         6,057          5,336
    Valuation allowance of CRDA investments and amortization of Indiana
       gaming costs ............................................................         4,804          5,020
    Accretion of phantom stock units ...........................................            --            194
    Increase in receivables ....................................................        (9,892)       (15,092)
    Decrease (increase) in inventories .........................................           806         (1,621)
    Increase in other current assets ...........................................        (5,047)        (7,800)
    Decrease (increase) in due from affiliates .................................        11,610         (1,408)
    Increase in other assets ...................................................        (3,094)        (9,848)
    Increase in accounts payable and accrued expenses ..........................         7,072         14,046
    Increase in accrued interest payable .......................................         1,649              3
    (Decrease) increase in other long-term liabilities .........................        (2,904)           715
                                                                                     ---------      ---------
     Net cash flows provided by operating activities ...........................        15,317         16,616
                                                                                     ---------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment, net ......................................       (13,709)       (54,256)
  Investment in Buffington Harbor, L.L.C .......................................           194         (1,700)
  CRDA Investments .............................................................        (6,603)        (6,757)
  Cash restricted for future construction ......................................         2,977             -- 
                                                                                     ---------      ---------
    Net cash flows used in investing activities ................................       (17,141)       (62,713)
                                                                                     ---------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Purchase of treasury stock ...................................................        (2,259)       (17,276)
  Issuance of long-term debt-other .............................................        68,047          2,013
  Payment of long-term debt-other ..............................................       (68,799)        (9,911)
  Cost of issuing debt .........................................................        (1,589)            -- 
                                                                                     ---------      ---------
    Net cash flows used in financing activities ................................        (4,600)       (25,174)
                                                                                     ---------      ---------

    Net decrease in cash and cash equivalents ..................................        (6,424)       (71,271)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ...............................       140,328        175,749
                                                                                     ---------      ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD .....................................     $ 133,904      $ 104,478
                                                                                     =========      =========

CASH INTEREST PAID .............................................................     $ 102,128      $  99,151
                                                                                     =========      =========

Supplemental Disclosure of Non-Cash Activities:
Purchase of property and equipment under capital lease obligations .............     $   1,673      $   1,689
                                                                                     =========      =========


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

</TABLE>

                                                       4
<PAGE>
<TABLE>
                                       TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                           CONDENSED CONSOLIDATED BALANCE SHEETS
                                                  (dollars in thousands)

<CAPTION>
                                     ASSETS

                                                                                  June 30,       December 31,
                                                                                    1998             1997   
                                                                                -----------      -----------
                                                                                (unaudited)
<S>                                                                             <C>              <C>
CURRENT ASSETS:
   Cash and cash equivalents ..............................................     $   133,900      $   140,324
   Receivables, net .......................................................          71,910           68,075
   Inventories ............................................................          12,205           13,011
   Due from Affiliates, net ...............................................           1,402           13,173
   Prepaid expenses and other current assets ..............................          19,560           13,892
                                                                                -----------      -----------

       Total Current Assets ...............................................         238,977          248,475

INVESTMENT IN BUFFINGTON HARBOR, L.L.C ....................................          41,858           43,535
INVESTMENT IN TRUMP'S CASTLE PIK NOTES ....................................          58,500           53,381
PROPERTY AND EQUIPMENT, NET ...............................................       1,978,743        2,004,751
CASH RESTRICTED FOR FUTURE CONSTRUCTION ...................................          10,023           13,000
DEFERRED BOND AND LOAN ISSUANCE COSTS, NET ................................          42,483           45,071
DUE FROM AFFILIATES .......................................................           3,634            3,493
OTHER ASSETS ..............................................................          66,894           60,659
                                                                                -----------      -----------

Total Assets ..............................................................     $ 2,441,112      $ 2,472,365
                                                                                ===========      ===========


                             LIABILITIES AND CAPITAL

CURRENT LIABILITIES:
   Current maturities of long-term debt ...................................     $    15,444      $    21,890
   Accounts payable and accrued expenses ..................................         116,596          109,489
   Accrued interest payable ...............................................          30,687           29,038
                                                                                -----------      -----------
           Total Current Liabilities ......................................         162,727          160,417

LONG-TERM DEBT, net of current maturities .................................       1,831,885        1,817,569
OTHER LONG-TERM LIABILITIES ...............................................          16,607           17,080
                                                                                -----------      -----------
Total Liabilities .........................................................       2,011,219        1,995,066
                                                                                -----------      -----------

PARTNERS' CAPITAL:
Partners' Capital .........................................................         652,503          652,503
Accumulated Deficit .......................................................        (203,075)        (157,928)
Less treasury stock .......................................................         (19,535)         (17,276)
                                                                                -----------      -----------
Total Partners' Capital ...................................................         429,893          477,299
                                                                                -----------      -----------

Total Liabilities and Partners' Capital ...................................     $ 2,441,112      $ 2,472,365
                                                                                ===========      ===========


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


                                                      5
</TABLE>

<PAGE>
<TABLE>
                                       TRUMP HOTELS & CASINO HOLDINGS L.P.
                                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                                   (unaudited)
                                             (dollars in thousands)

<CAPTION>
                                                  Three Months Ended             Six Months Ended
                                                       June 30,                       June 30, 
                                               ------------------------      ------------------------
                                                  1998          1997            1998          1997
                                               ---------      ---------      ---------      ---------
<S>                                            <C>            <C>            <C>            <C>      
REVENUES:
   Gaming ................................     $ 315,316      $ 336,686      $ 607,529      $ 653,575
   Rooms .................................        23,613         26,178         44,089         47,803
   Food and Beverage .....................        35,845         38,906         69,516         73,839
   Other .................................        10,751         12,225         20,424         21,942
                                               ---------      ---------      ---------      ---------
   Gross Revenues ........................       385,525        413,995        741,558        797,159

   Less -- Promotional allowances ........        41,333         45,971         80,893         86,893
                                               ---------      ---------      ---------      ---------
   Net Revenues ..........................       344,192        368,024        660,665        710,266
                                               ---------      ---------      ---------      ---------

COSTS AND EXPENSES:
   Gaming ................................       201,130        212,572        387,472        411,375
   Rooms .................................         8,161          8,030         15,269         15,130
   Food and Beverage .....................        13,446         12,809         24,210         24,220
   General and Administrative ............        63,944         68,707        129,899        136,210
   Depreciation and Amortization .........        20,462         19,203         41,053         46,275
                                               ---------      ---------      ---------      ---------
                                                 307,143        321,321        597,903        633,210
                                               ---------      ---------      ---------      ---------
   Income from operations ................        37,049         46,703         62,762         77,056
                                               ---------      ---------      ---------      ---------

NON-OPERATING INCOME AND (EXPENSES):
   Interest income .......................         2,038          1,237          5,147          3,202
   Interest expense ......................       (55,667)       (52,671)      (111,287)      (105,270)
   Other non-operating expense ...........            11             --           (286)            --
                                               ---------      ---------      ---------      ---------
                                                 (53,618)       (51,434)      (106,426)      (102,068)
                                               ---------      ---------      ---------      ---------

Loss before equity in loss of Buffington
   Harbor, L.L.C .........................       (16,569)        (4,731)       (43,664)       (25,012)
Equity in loss of Buffington Harbor, L.L.C          (742)        (1,092)        (1,483)        (1,730)
                                               ---------      ---------      ---------      ---------

Loss before income taxes .................       (17,311)        (5,823)       (45,147)       (26,742)
Income tax benefit .......................            --            883             --             --
                                               ---------      ---------      ---------      ---------

NET LOSS .................................     $ (17,311)     $  (4,940)     $ (45,147)     $ (26,742)
                                               =========      =========      =========      =========


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


                                                        6
</TABLE>

<PAGE>


                  TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
              CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
                     FOR THE SIX MONTHS ENDED JUNE 30, 1998
                                   (unaudited)
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                  Partners'    Accumulated       THCR
                                   Capital       Deficit      Common Stock      Total
                                  ---------     ---------     ------------    ---------
<S>                               <C>           <C>            <C>            <C>      
Balance, December 31, 1997 ..     $ 652,503     $(157,928)     $ (17,276)     $ 477,299

Purchase of 305,000 shares of
   THCR Common Stock ........            --            --         (2,259)        (2,259)

Net Loss ....................            --       (45,147)            --        (45,147)
                                  ---------     ---------      ---------      ---------


Balance, June 30,  1998 .....     $ 652,503     $(203,075)     $ (19,535)     $ 429,893
                                  =========     =========      =========      =========
</TABLE>




               The accompanying notes are an integral part of this
                  condensed consolidated financial statement.


                                       7
<PAGE>
<TABLE>

                                      TRUMP HOTELS & CASINO HOLDINGS, L.P.
                               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
                                   THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                                                   (unaudited)
                                             (dollars in thousands)

<CAPTION>
                                                                                        1998           1997
                                                                                     ---------      ---------
<S>                                                                                  <C>            <C>       
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss .....................................................................     $ (45,147)     $ (26,742)
  Adjustments to reconcile net loss to net cash flows from operating activities:
    Issuance of debt in exchange for accrued interest ..........................         5,612          4,908
    Equity in loss of Buffington Harbor, L.L.C .................................         1,483          1,730
    Depreciation and amortization ..............................................        41,053         46,275
    Payment-In-Kind interest in Castle PIK Notes ...............................        (5,119)        (4,404)
    Accretion of discounts on mortgage notes ...................................         2,198          1,543
    Amortization of deferred loan costs ........................................         4,176          3,955
    Provision for losses on receivables ........................................         6,057          5,336
    Valuation allowance of CRDA investments and amortization of Indiana
       gaming costs ............................................................         4,804          5,020
    Increase in receivables ....................................................        (9,892)       (15,092)
    Decrease (increase) in inventories .........................................           806         (1,621)
    Increase in other current assets ...........................................        (5,047)        (7,800)
    Decrease (increase) in due from affiliates .................................        11,610         (1,408)
    Increase in other assets ...................................................        (3,094)        (9,848)
    Increase in accounts payable and accrued expenses ..........................         7,072         14,046
    Increase in accrued interest payable .......................................         1,649              3
    (Decrease) increase in other long-term liabilities .........................        (2,904)           715
                                                                                     ---------      ---------
     Net cash flows provided by operating activities ...........................        15,317         16,616
                                                                                     ---------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment, net ......................................       (13,709)       (54,256)
  Investment in Buffington Harbor, L.L.C .......................................           194         (1,700)
  CRDA Investments .............................................................        (6,603)        (6,757)
  Cash restricted for future construction ......................................         2,977             -- 
                                                                                     ---------      ---------
    Net cash flows used in investing activities ................................       (17,141)       (62,713)
                                                                                     ---------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Purchase of treasury stock ...................................................        (2,259)       (17,276)
  Issuance of long-term debt-other .............................................        68,047          2,013
  Payment of long-term debt-other ..............................................       (68,799)        (9,911)
  Cost of issuing debt .........................................................        (1,589)            -- 
                                                                                     ---------      ---------
    Net cash flows used in financing activities ................................        (4,600)       (25,174)
                                                                                     ---------      ---------

    Net decrease in cash and cash equivalents ..................................        (6,424)       (71,271)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ...............................       140,324        175,745
                                                                                     ---------      ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD .....................................     $ 133,900      $ 104,474
                                                                                     =========      =========

CASH INTEREST PAID .............................................................     $ 102,128      $  99,151
                                                                                     =========      =========

Supplemental Disclosure of Non-Cash Activities:
Purchase of property and equipment under capital lease obligations .............     $   1,673      $   1,689
                                                                                     =========      =========



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


                                                 8
</TABLE>

<PAGE>


                      TRUMP HOTELS & CASINO RESORTS, INC.,
                  TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                       AND
                   TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1)  Organization and Operations

The accompanying  condensed  consolidated  financial statements include those of
Trump Hotels & Casino  Resorts,  Inc., a Delaware  corporation  ("THCR"),  Trump
Hotels & Casino Resorts Holdings,  L.P., a Delaware limited  partnership  ("THCR
Holdings"),  and subsidiaries,  including Trump Hotels & Casino Resorts Funding,
Inc.  ("THCR  Funding").  THCR  Holdings is an entity which is  currently  owned
approximately  63.4%  by  THCR,  as both a  general  and  limited  partner,  and
approximately 36.6% by Donald J. Trump ("Trump"), as a limited partner.  Trump's
limited partnership  interest in THCR Holdings represents his economic interests
in the  assets  and  operations  of THCR  Holdings.  Accordingly,  such  limited
partnership  interest is convertible at Trump's option into 13,918,723 shares of
THCR's common  stock,  par value $.01 per share (the "THCR Common  Stock").  The
accompanying consolidated financial statements include those of (i) THCR and its
63.4% owned  subsidiary,  THCR  Holdings,  and (ii) THCR Holdings and its wholly
owned subsidiaries:

     Trump Atlantic City  Associates  ("Trump AC") and its  subsidiaries,  Trump
     Plaza Associates ("Plaza  Associates") and Trump Taj Mahal Associates ("Taj
     Associates").  Plaza Associates owns and operates the Trump Plaza Hotel and
     Casino ("Trump Plaza") located in Atlantic City, New Jersey. Taj Associates
     owns and  operates  the Trump Taj Mahal  Casino  Resort  (the "Taj  Mahal")
     located in Atlantic City, New Jersey.  Taj Associates was acquired on April
     17, 1996.

     Trump Indiana,  Inc. ("Trump Indiana"),  which commenced operations on June
     8, 1996,  owns and  operates a  riverboat  gaming  facility  at  Buffington
     Harbor, on Lake Michigan, Indiana (the "Indiana Riverboat").

     Trump's Castle Associates,  L.P. ("Castle Associates"),  which was acquired
     on October 7, 1996.  Castle Associates owns and operates Trump Marina Hotel
     Casino ("Trump Marina") located in Atlantic City, New Jersey.

     THCR Funding,  the co-issuer of  $145,000,000 15 1/2% Senior Secured Notes,
     due 2005 (the "Senior Notes").

     All significant intercompany balances and transactions have been eliminated
in the accompanying condensed consolidated financial statements.

     The  accompanying  condensed  consolidated  financial  statements have been
prepared  without  audit.  In  the  opinion  of  management,   all  adjustments,
consisting of only normal recurring  adjustments necessary to present fairly the
financial  position,  the results of  operations  and cash flows for the periods
presented, have been made.

     The  accompanying  condensed  consolidated  financial  statements have been
prepared  pursuant to the rules and  regulations  of the Securities and Exchange
Commission  ("SEC").  Accordingly,  certain  information  and  note  disclosures
normally included in financial  statements prepared in conformity with generally
accepted accounting principles have been condensed or omitted.

     These  condensed  consolidated  financial  statements  should  be  read  in
conjunction  with  the  consolidated  financial  statements  and  notes  thereto
included in the annual report on Form 10-K for the year ended  December 31, 1997
filed with the SEC.

     The casino  industry in Atlantic  City is seasonal in nature;  accordingly,
results of  operations  for the period  ended June 30, 1998 are not  necessarily
indicative of the operating results for a full year.

     THCR,  THCR Holdings and THCR Funding have no operations  and their ability
to service  their debt is dependent on the  successful  operations  of Trump AC,
Trump  Indiana  and Castle  Associates.  THCR,  through  THCR  Holdings  and its
subsidiaries, is the exclusive vehicle through which Trump engages in new gaming
activities in emerging or established gaming jurisdictions.



                                       9
<PAGE>


                      TRUMP HOTELS & CASINO RESORTS, INC.,
                  TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                       AND
                   TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

Basic Loss Per Share

     In the  fourth  quarter  of  1997,  THCR  adopted  Statement  of  Financial
Accounting  Standards  Board,  Statement No. 128 "Earnings per Share" ("SFAS No.
128").  SFAS No. 128 requires the presentation in the consolidated  statement of
operations  for all years  presented  of both basic and  dilutive  earnings  per
share.  Basic and dilutive loss per share  calculated  under this Statement does
not differ from earnings per share reported in prior periods.

     Basic loss per share is based on the weighted  average  number of shares of
THCR Common Stock outstanding. Dilutive earnings per share are the same as basic
earnings per share as common stock  equivalents  have not been  included as they
would be  anti-dilutive.  The shares of THCR's Class B Common  Stock,  par value
$.01 per share ("the THCR Class B Common Stock") owned by Trump have no economic
interest and therefore are not considered in the calculation of weighted average
shares outstanding.

Reclassifications

     Certain reclassifications have been made to prior year financial statements
to conform to the current year presentation.

(2)  Property and Equipment

     During the second quarter of 1997, THCR revised its estimates of the useful
lives of buildings,  building  improvements,  furniture and fixtures  which were
acquired in 1996. Building and building  improvements were reevaluated to have a
forty year life and furniture and fixtures were  determined to have a seven year
life.  During the third quarter of 1997,  Trump Indiana revised its estimates of
the useful life of the  riverboat  and its  improvements  from fifteen to thirty
years. THCR believes these changes more appropriately  reflect the timing of the
economic benefits to be received from these assets during their estimated useful
lives.  For the three and six  months  ended  June 30,  1998,  the net effect of
applying  these new  lives was to  decrease  net loss by $0 and  $2,300,000  and
decrease loss per share by $0 and $.07, respectively.

(3)  Long-Term Debt and Subsequent Events

     On  April  17,  1998,  Trump's  Castle  Funding,  Inc.  ("Castle  Funding")
refinanced  its 11 1/2% Senior  Secured  Notes due 2000 (the "Old Castle  Senior
Notes")  and its term loan  with a bank (the  "Term  Loan") by  issuing  10 1/4%
Senior Secured Notes due 2003 (the "New Castle Senior Notes"). The proceeds from
the  issuance  of the New  Castle  Senior  Notes  were used to redeem all of the
issued and outstanding Old Castle Senior Notes at 100% of their principal amount
and to repay  the Term  Loan in full.  In  conjunction  with  this  refinancing,
Trump's Castle Hotel & Casino,  Inc. ("TCHI"),  a New Jersey corporation and the
general partner of Castle Associates, obtained a working capital credit facility
(the "Working  Capital Loan").  Both the New Castle Senior Notes and the Working
Capital Loan are guaranteed by Castle Associates.

     The New  Castle  Senior  Notes  have an  outstanding  principal  amount  of
$62,000,000  and  bear  interest  at the  rate of 10  1/4%  per  annum,  payable
semi-annually  each April and  October.  The New Castle  Senior  Notes mature on
April 17, 2003.

     The Working Capital Loan has an outstanding  principal amount of $5,000,000
and bears interest at the rate of 10 1/4% per annum, payable  semi-annually each
April and  October.  The entire  principal  balance of the Working  Capital Loan
matures on April 17, 2003.

     On July 8, 1998, Castle Associates  received a bank commitment to refinance
its Mortgage  Notes,  New Castle  Senior Notes and the Working  Capital  Loan. A
tender offer was made to existing mortgage note holders on July 9, 1998 offering
$940 per $1,000 of principal amount, plus accrued interest.  Consummation of the
tender offer is conditioned upon, among other things, a minimum tender of 98% of
the principal  amount of the mortgage notes.  The expiration of the tender offer
was extended to August 14, 1998. Although it is Castle Associates'  intention to
complete  this  transaction,  no  assurances  can be  made  as to  the  ultimate
consummation  of the  refinancing,  or on the  precise  terms  as are  currently
outlined in the existing tender offer and bank commitment.


                                       10
<PAGE>

                      TRUMP HOTELS & CASINO RESORTS, INC.,
                  TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                       AND
                   TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(4)  Financial Information

     Financial information relating to THCR Funding is as follows:

<TABLE>
<CAPTION>
                                                                      June 30,       December 31,
                                                                        1998             1997
                                                                    ------------     ------------
<S>                                                                 <C>              <C>
Total Assets (including Notes receivable of
         $145,000,000 at June 30, 1998 and
         December 31, 1997) ...................................     $145,936,000     $145,936,000
                                                                    ============     ============

Total Liabilities and Capital (including $145,000,000 of Senior
         Notes ................................................     $145,936,000     $145,936,000
                                                                    ============     ============
</TABLE>

<TABLE>
<CAPTION>
                                                                      Six Months Ended June 30,
                                                                        1998             1997
                                                                    ------------     ------------
<S>                                                                 <C>              <C>         
Interest Income from THCR Holdings ............................     $ 11,238,000     $ 11,238,000

Interest Expense ..............................................     $ 11,238,000     $ 11,238,000
                                                                    ------------     ------------

Net Income ....................................................     $         --     $         -- 
                                                                    ============     ============
</TABLE>

(5)  Accounts Receivable

     Plaza  Associates is appealing a real estate tax  assessment by the City of
Atlantic  City.  Included  in  accounts  receivable  is  $4,400,000  which Plaza
Associates estimates will be recoverable on the settlement of the appeal.

(6)  Change in Accounting Policy

     On April 9, 1998, the American  Institute of Certified  Public  Accountants
("AICPA")  issued  Statement of Position ("SOP") 98-5 "Reporting on the Costs of
Start-Up  Activities".  The new standard amends previous guidance from the AICPA
that  permitted  capitalization  of  start-up  costs in certain  industries  and
requires  that all  nongovernmental  entities  expense  the  costs  of  start-up
activities as those costs are incurred.  Under the SOP, the term  "start-up" has
been broadly  defined to include  pre-operating,  pre-opening  and  organization
activities.  Companies  must adopt the new  standard in fiscal  years  beginning
after December 15, 1998. At adoption,  a company must record a cumulative effect
of a change in accounting  principle to write off any unamortized start-up costs
that existed as of the  beginning of the fiscal year in which the SOP is adopted
and an operating  expense for those costs which were  incurred  and  capitalized
since the beginning of the fiscal year and adoption of the SOP.

     THCR has not yet decided when it will adopt the new standard, but it is not
expected to be adopted  earlier than the first quarter of 1999. Had THCR adopted
the new standard as of June 30, 1998,  the net loss of  $28,650,000  for the six
months  ended June 30, 1998 would have  increased  by $663,000 for the effect of
the write-off of capitalized  costs incurred  through the second quarter of 1998
and $1,872,000 for the cumulative  effect of change in accounting  principle for
costs  incurred   through  December  31,  1997,  to  an  adjusted  net  loss  of
$31,185,000.  The corresponding earnings per share effect would increase the net
loss per share as  reported  of $1.29 for the six months  ended June 30, 1998 by
$.03 for the write-off of capitalized  costs through the second quarter and $.08
for the cumulative effect of change in accounting  principle to an adjusted loss
per share of $1.40.




                                       11
<PAGE>

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

Capital Resources and Liquidity

     Cash  flows  from  operating  activities  are  THCR's  principal  source of
liquidity and were  $15,317,000  for the six months ended June 30, 1998 compared
to $16,616,000 for the comparable period in 1997.

     Capital  expenditures  for Trump AC were $7,726,000 and $51,215,000 for the
six months ended June 30, 1998 and 1997, respectively.  Capital expenditures for
improvements   to  Trump  Plaza's   existing   facilities  were  $5,234,000  and
$20,987,000  for the six months ended June 30, 1998 and 1997,  respectively.  In
addition,  in 1997,  Plaza  Associates  exercised  its option to  purchase  from
Seashore Four  Associates,  an entity  beneficially  owned by Trump,  one of the
parcels of land underlying Trump Plaza's main tower,  pursuant to the terms of a
lease,  the  payments  under  which were  terminated  upon the  exercise of such
option. The purchase price and associated closing costs were $10,144,000.

     Capital  expenditures  attributable  to the Taj Mahal were  $2,157,000  and
$29,603,000  for the six  months  ended  June 30,  1998 and 1997,  respectively.
Capital  expenditures for improvements to existing facilities were approximately
$2,157,000  and  $5,147,000  for the six months  ended  June 30,  1998 and 1997,
respectively. Capital expenditures attributable to the expansion of the facility
were approximately $24,456,000 for the six months ended June 30, 1998.

     The expansion at the Taj Mahal (the "Taj Mahal Expansion") consisted of the
construction  of a new 14-bay bus terminal which was completed in December 1996,
a 2,400 space  expansion of the  existing  self  parking  facilities,  which was
completed in May 1997, and an approximate  7,000  square-foot  casino  expansion
with 260 slot machines, which was completed in July 1997. The total costs of the
Taj  Mahal  Expansion   including   amounts  expended  in  1996  and  1997  were
approximately  $43,500,000  and have been  funded  principally  out of cash from
operations.

     Capital expenditures  attributable to Castle Associates were $1,147,000 and
$1,397,000  for the six  months  ended  June 30,  1998 and  1997,  respectively.
Capital   expenditures   attributable  to  Trump  Indiana  were  $4,739,000  and
$1,598,000  for the six  months  ended  June 30,  1998 and  1997,  respectively.
Approximately $15 million costs of hotel  construction and other  infrastructure
improvements  will  be  applied  towards  satisfying  the  economic  development
commitment  required in connection with the Indiana licensing  process.  THCR is
currently  negotiating  with the Majestic Star Casino,  L.L.C.  ("Barden"),  the
other riverboat licensee and joint owner with Trump Indiana of Buffington Harbor
Riverboats, L.L. C. ("BHR"), and the City of Gary for the development of a 1,500
space parking garage by BHR which would cost approximately $20 million.

     On April 17, 1998 Castle Funding refinanced its Old Castle Senior Notes and
its Term Loan by issuing the New Castle  Senior  Notes.  The  proceeds  from the
issuance  of the New Castle  Senior  Notes were used to redeem all of the issued
and outstanding  Old Castle Senior Notes and 100% of their principal  amount and
to repay the Term Loan in full. In conjunction  with this  refinancing,  TCHI, a
New Jersey corporation and the general partner of Castle Associates,  obtained a
working  capital  credit  facility (the "Working  Capital  Loan").  Both the New
Castle  Senior  Notes and the  Working  Capital  Loan are  guaranteed  by Castle
Associates.

     The New  Castle  Senior  Notes  have an  outstanding  principal  amount  of
$62,000,000  and  bear  interest  at the  rate of 10  1/4%  per  annum,  payable
semi-annually  each April and  October.  The New Castle  Senior  Notes mature on
April 17, 2003.

     The Working Capital Loan has an outstanding  principal amount of $5,000,000
and bears interest at the rate of 10 1/4% per annum, payable  semi-annually each
April and  October.  The entire  principal  balance of the Working  Capital Loan
matures on April 17, 2003.

     On July 8, 1998, Castle Associates  received a bank commitment to refinance
its Mortgage  Notes,  New Castle  Senior Notes and the Working  Capital  Loan. A
tender offer was made to existing mortgage note holders on July 9, 1998 offering
$940 per $1,000 of principal amount, plus accrued interest.  Consummation of the
tender offer is conditioned upon, among other things, a minimum tender of 98% of
the principal  amount of the mortgage notes.  The expiration of the tender offer
was extended to August 14, 1998. Although it is Castle Associates'  intention to
complete  this  transaction,  no  assurances  can be  made  as to  the  ultimate
consummation  of the  refinancing,  or on the  precise  terms  as are  currently
outlined in the existing tender offer and bank commitment.



                                       12
<PAGE>

     Castle Associates has the authority to obtain a working capital facility of
up to $10,000,000 (of which  approximately  $5,437,000 is outstanding)  although
there can be no  assurance  that such  financing  will be  available or on terms
acceptable to Castle Associates.

     THCR has assessed the year 2000 issue and has begun  implementing a plan to
resolve the issue,  which is expected to be completed in early 1999.  Based upon
management's  assessment,  it is anticipated  that associated  costs incurred to
satisfactorily complete the plan will not be material.

     The indenture  governing the Senior Notes (the "Senior Note  Indenture") as
well as indentures of the subsidiaries restrict the ability of THCR Holdings and
its subsidiaries to make distributions to partners or pay dividends, as the case
may be, unless certain  financial  ratios are achieved.  Further,  THCR's future
operating  results  are  conditional  and could  fluctuate,  given  the  rapidly
changing competitive environment.

     In addition,  the ability of Plaza  Associates,  Taj  Associates and Castle
Associates to make payments of dividends or  distributions  to THCR Holdings may
be restricted by the New Jersey Casino Control  Commission  ("CCC").  Similarly,
the ability of Trump Indiana to make payments of dividends or  distributions  to
THCR Holdings may be restricted by the Indiana Gaming Commission.


Results of Operations: Operating Revenues and Expenses

     All business  activities  of THCR and THCR  Holdings are conducted by Plaza
Associates, Taj Associates, Trump Marina and Trump Indiana.

     Comparison  of  Three-Month  Periods  Ended  June 30,  1998 and  1997.  The
following  tables include  selected data of Plaza  Associates,  Taj  Associates,
Trump Indiana and Trump Marina.


<TABLE>
<CAPTION>
                                                  Three Months Ended June 30, 1998   
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Revenues:
 Gaming ..........................     $ 93.0      $125.9      $ 35.3     $ 61.2     $315.3
 Other ...........................       25.1        29.6         0.8       14.6       70.2
                                       ------      ------      ------     ------     ------
  Gross Revenues .................      118.1       155.5        36.1       75.8      385.5
Less: Promotional Allowances .....       15.7        16.4         0.2        9.0       41.3
                                       ------      ------      ------     ------     ------
  Net Revenues ...................      102.4       139.1        35.9       66.8      344.2
                                       ------      ------      ------     ------     ------
Costs and Expenses:
 Gaming ..........................       56.5        79.7        26.2       38.7      201.1
 General & Administrative ........       18.8        21.3         6.7       13.7       63.9
 Depreciation & Amortization .....        6.1         9.0         1.1        4.1       20.5
 Other ...........................        8.8         8.6         0.8        3.5       21.6
                                       ------      ------      ------     ------     ------
  Total Costs and Expenses .......       90.2       118.6        34.8       60.0      307.1
                                       ------      ------      ------     ------     ------

Income from Operations ...........       12.2        20.5         1.1        6.8       37.1
                                       ------      ------      ------     ------     ------
Non-operating Income .............        0.4         1.2         0.2        0.1        2.0
Interest Expense .................      (11.9)      (23.5)       (2.3)     (12.7)     (55.7)
                                       ------      ------      ------     ------     ------
  Total Non-operating Expense, Net      (11.5)      (22.3)       (2.1)     (12.6)     (53.7)
                                       ------      ------      ------     ------     ------
Loss in Joint Venture ............         --          --        (0.7)        --       (0.7)
Income Tax Benefit ...............         --          --          --         --         --
                                       ------      ------      ------     ------     ------
Loss Before Minority Interest ....     $  0.7      $ (1.8)     $ (1.7)    $ (5.8)     (17.3)
                                       ======      ======      ======     ======
Minority Interest ................                                                      6.3
                                                                                     ------
Net Loss .........................                                                   $(11.0)
                                                                                     ======
</TABLE>

*    Intercompany  eliminations  and expenses of THCR and THCR  Holdings are not
     separately shown.



                                       13
<PAGE>

<TABLE>
<CAPTION>
                                                  Three Months Ended June 30, 1997   
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Revenues:
 Gaming ..........................     $ 97.9      $134.6      $ 35.6     $ 68.5     $336.7
 Other ...........................       28.3        31.4         1.0       16.7       77.3
                                       ------      ------      ------     ------     ------
  Gross Revenues .................      126.2       166.0        36.6       85.2      414.0
Less: Promotional Allowances .....       16.7        19.0         0.1       10.2       46.0
                                       ------      ------      ------     ------     ------
  Net Revenues ...................      109.5       147.0        36.5       75.0      368.0
                                       ------      ------      ------     ------     ------

Costs and Expenses:
 Gaming ..........................       61.2        84.0        22.9       44.4      212.6
 General & Administrative ........       21.4        20.7         7.6       16.0       68.8
 Depreciation & Amortization .....        5.4         8.8         1.3        3.7       19.2
 Other ...........................        8.3         8.6         0.8        3.2       20.8
                                       ------      ------      ------     ------     ------
  Total Costs and Expenses .......       96.3       122.1        32.6       67.3      321.4
                                       ------      ------      ------     ------     ------

Income from Operations ...........       13.2        24.9         3.9        7.7       46.6
                                       ------      ------      ------     ------     ------
Non-operating Income .............        0.1         0.2         0.1        0.0        1.2
Interest Expense .................      (12.2)      (23.7)       (2.5)     (12.2)     (52.6)
                                       ------      ------      ------     ------     ------
  Total Non-operating Expense, Net      (12.1)      (23.5)       (2.4)     (12.2)     (51.4)
                                       ------      ------      ------     ------     ------

Loss in Joint Venture ............         --          --        (1.1)        --       (1.1)
Income Tax Benefit ...............         --          --         0.9         --        0.9
                                       ------      ------      ------     ------     ------
Loss before Minority Interest ....     $  1.1      $  1.4      $  1.3     $ (4.5)      (5.0)
                                       ======      ======     ======     ======
Minority Interest ................                                                      1.8
                                                                                     ------
Net Loss .........................                                                   $ (3.2)
                                                                                     ======
</TABLE>

*    Intercompany  eliminations  and expenses of THCR and THCR  Holdings are not
     separately shown.

<TABLE>
<CAPTION>
                                                  Three Months Ended June 30, 1998
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                   <C>         <C>         <C>        <C>        <C>   
Table Game Revenues ..............     $ 23.5      $ 47.6      $  8.8     $ 15.1     $ 95.0
Incr (Decr) over prior period ....     $ (0.1)     $ (2.8)     $ (2.5)    $ (3.7)    $ (9.1)
Table Game Drop ..................     $156.2      $299.9      $ 55.8     $100.8     $612.7
Incr (Decr) over prior period ....     $ (8.3)     $(26.9)     $ (0.1)    $(27.6)    $(62.9)
Table Win Percentage .............       15.0%       15.9%       15.7%      15.0%      15.5%
Incr (Decr) over prior period ....     0.7pts.     0.5pts.     (4.6)pts.  0.4pts.    0.1pts.
Number of Table Games ............        111         153          59         91        414
Incr (Decr) over prior period ....          1          (5)        (10)        (5)       (19)

Slot Revenues ....................     $ 69.5      $ 73.7      $ 26.5     $ 45.5     $215.2
Incr (Decr) over prior period ....     $ (4.8)     $ (5.9)     $  2.2     $ (3.7)    $(12.2)
Slot Handle ......................     $856.7      $899.0      $424.0     $561.7     $2,741.4
Incr (Decr) over prior period ....     $(46.2)     $(22.8)     $ 69.0     $(28.3)    $(28.3)
Slot Win Percentage ..............        8.1%        8.2%        6.3%       8.1%       7.9%
Incr (Decr) over prior period ....   (0.1)pts.   (0.4)pts.  (0.5)pts.  (0.2) pts.  (0.3)pts.
Number of Slot Machines ..........      4,092       4,130       1,350      2,163     11,735
Incr (Decr) over prior period ....         28         292         (74)        (5)       241
Other Gaming Revenues ............        N/A      $  4.6         N/A     $  0.5     $  5.1
Incr (Decr) over prior period ....        N/A      $  0.0         N/A     $  0.0     $  0.0

Total Gaming Revenues ............     $ 93.0      $125.9      $ 35.3     $ 61.2     $315.3
Incr (Decr) over prior period ....     $ (4.9)     $ (8.7)     $ (0.3)    $ (7.3)    $(21.4)
</TABLE>


                                       14
<PAGE>

<TABLE>
<CAPTION>
                                                  Three Months Ended June 30, 1997   
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Table Game Revenues ..............     $ 23.6      $ 50.4      $ 11.3     $ 18.8     $  104.1
Table Game Drop ..................     $164.5      $326.8      $ 55.9     $128.4     $  675.6
Table Win Percentage .............       14.3%       15.4%       20.3%      14.6%       15.4%
Number of Table Games ............        110         158          69         96          433

Slot Revenues ....................     $ 74.3      $ 79.6      $ 24.3     $ 49.2     $  227.4
Slot Handle ......................     $902.9      $921.8      $355.0     $590.0     $2,769.7
Slot Win Percentage ..............        8.2%        8.6%        6.8%       8.3%         8.2%
Number of Slot Machines ..........      4,064       3,838       1,424      2,168       11,494
Other Gaming Revenues ............        N/A      $  4.6         N/A     $  0.5     $    5.1

Total Gaming Revenues ............     $ 97.9      $134.6      $ 35.6     $ 68.5     $  336.7
</TABLE>


     Gaming  revenues are the primary source of THCR's  revenues.  The year over
year  decrease  in gaming  revenues  was due  primarily  to the  decline in slot
revenues at the three  Atlantic  City  properties  as the result of an increased
competitive  marketplace.  The decline in table game revenues at Trump Taj Mahal
was due to the decline of high-end international table game players due to Asian
economic conditions.  Table games revenues represent the amount retained by THCR
from amounts wagered at table games. The table win percentage tends to be fairly
constant over the long term, but may vary  significantly  in the short term, due
to large  wagers  by "high  rollers".  The  Atlantic  City  industry  table  win
percentages  were 14.9% and 14.7% for the quarters ended June 30, 1998 and 1997,
respectively.  Decreases in table  revenues at Trump Indiana are attributed to a
lower table game win percentage as compared to the previous  year.  Increases in
slot revenues at Trump Indiana are attributed to higher slot handle in 1998.

     Gaming costs and expenses were $201,130,000 for the three months ended June
30,  1998,  a  decrease  of  $11,442,000  or 5.4%  from  $212,572,000  from  the
comparable  period in 1997. This decrease is substantially  proportionate to the
decrease in gaming  revenues from the  comparable  period in 1997, and represent
primarily marketing and promotional costs.

     General and administrative  expenses decreased  $4,840,000 or 7.0% from the
comparative  period in 1997.  This decrease is due primarily to the reduction in
advertising, insurance, and real estate tax expenses in 1998.







                                       15
<PAGE>

   Comparison of Six-Month  Periods Ended June 30, 1998 and 1997.  The following
tables include selected data of Plaza Associates, Taj Associates,  Trump Indiana
and Trump Marina.

<TABLE>
<CAPTION>
                                                   Six Months Ended June 30, 1998
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Revenues:
 Gaming ..........................     $180.3      $240.4      $ 63.1      123.8     $607.5
 Other ...........................       48.2        56.7         1.5       27.5      134.1
                                       ------      ------      ------     ------     ------
  Gross Revenues .................      228.5       297.1        64.6      151.3      741.6
Less: Promotional Allowances .....       30.1        32.5         0.4       17.9       80.9
                                       ------      ------      ------     ------     ------
  Net Revenues ...................      198.4       264.6        64.2      133.4      660.7
                                       ------      ------      ------     ------     ------
Costs and Expenses:
 Gaming ..........................      110.5       152.3        46.1       78.6      387.5
 General & Administrative ........       38.8        42.5        13.6       28.7      129.9
 Depreciation & Amortization .....       12.2        18.3         2.1        8.2       41.1
 Other ...........................       15.3        16.6         1.6        5.9       39.4
                                       ------      ------      ------     ------     ------
  Total Costs and Expenses .......      176.8       229.7        63.4      121.4      597.9
                                       ------      ------      ------     ------     ------
Income from Operations ...........       21.6        34.9         0.8       12.0       62.8
                                       ------      ------      ------     ------     ------
Non-operating Income .............        0.8         1.3         0.3        0.4        4.9
Interest Expense .................      (23.9)      (47.1)       (4.8)     (25.4)    (111.3)
                                       ------      ------      ------     ------     ------
  Total Non-operating Expense, Net      (23.1)      (45.8)       (4.5)     (25.0)    (106.4)
                                       ------      ------      ------     ------     ------
Loss in Joint Venture ............         --          --        (1.5)        --       (1.5)
Income Tax Benefit ...............         --          --          --         --         -- 
                                       ------      ------      ------     ------     ------
Loss Before Minority Interest ....     $ (1.5)     $(10.9)     $ (5.2)    $(13.0)    $(45.1)
                                       ======      ======      ======     ======
Minority Interest ................                                                     16.5
                                                                                     ------
Net Loss .........................                                                   $(28.6)
                                                                                     ======
</TABLE>

*    Intercompany  eliminations  and expenses of THCR and THCR  Holdings are not
     separately shown.

<TABLE>
<CAPTION>
                                                   Six Months Ended June 30, 1997
                                     -----------------------------------------------------------
                                       Plaza        Taj        Trump      Trump       THCR
                                     Associates  Associates   Indiana     Marina   Consolidated*
                                     ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Revenues:
 Gaming ..........................     $184.7      $262.9      $ 73.4     $132.5     $653.6
 Other ...........................       52.9        58.0         2.0       30.7      143.6
                                       ------      ------      ------     ------     ------
  Gross Revenues .................      237.6       320.9        75.4      163.2      797.2
Less: Promotional Allowances .....       31.3        35.5         0.3       19.7       86.9
                                       ------      ------      ------     ------     ------
  Net Revenues ...................      206.3       285.4        75.1      143.5      710.3
                                       ------      ------      ------     ------     ------
Costs and Expenses:
 Gaming ..........................      116.4       163.2        46.3       85.5      411.4
 General & Administrative ........       41.9        43.0        14.5       32.2      136.4
 Depreciation & Amortization .....       12.0        23.0         2.5        8.7       46.2
 Other ...........................       15.8        16.1         1.5        6.0       39.4
                                       ------      ------      ------     ------     ------
  Total Costs and Expenses .......      186.1       245.3        64.8      132.4      633.4
                                       ------      ------      ------     ------     ------
Income from Operations ...........       20.2        40.1        10.3       11.1       76.9
                                       ------      ------      ------     ------     ------
Non-operating Income .............        0.3         0.6         0.4        0.1        3.2
Interest Expense .................      (24.4)      (47.4)       (5.4)     (24.5)    (105.3)
                                       ------      ------      ------     ------     ------
  Total Non-operating Expense, Net      (24.1)      (46.8)       (5.0)     (24.4)    (102.1)
                                       ------      ------      ------     ------     ------
Loss in Joint Venture ............         --          --        (1.7)        --       (1.7)
Income Tax Benefit ...............         --          --          --         --         -- 
                                       ------      ------      ------     ------     ------
Loss before Minority Interest ....     $ (3.9)     $ (6.7)     $  3.6     $(13.3)    $(26.9)
                                       ======      ======      ======     ======
Minority Interest ................                                                      9.8
                                                                                     ------
Net Loss .........................                                                   $(17.1)
                                                                                     ======
</TABLE>

*    Intercompany  eliminations  and expenses of THCR and THCR  Holdings are not
     separately shown.



                                       16
<PAGE>

<TABLE>
<CAPTION>
                                                    Six Months Ended June 30, 1998
                                 -----------------------------------------------------------------------
                                    Plaza           Taj           Trump         Trump          THCR
                                 Associates     Associates       Indiana        Marina     Consolidated*
                                 ----------     ----------       -------        ------     -------------
                                                        (dollars in millions)
<S>                               <C>            <C>            <C>            <C>            <C>   
Table Game Revenues .........     $    48.4      $    89.2      $    17.2      $    32.8      $   187.6
Incr (Decr) over prior period     $     2.9      $   (18.6)     $    (5.4)     $    (4.5)     $   (25.6)
Table Game Drop .............     $   307.8      $   574.6      $   107.0      $   212.6      $ 1,202.0
Incr (Decr) over prior period     $   (16.0)     $   (70.2)     $   (10.8)     $   (32.3)     $  (129.3)
Table Win Percentage ........          15.7%          15.5%          16.1%          15.4%          15.6%
Incr (Decr) over prior period       1.6pts.      (1.2)pts.      (3.0) pts.       0.2pts.       (0.4)pts.
Number of Table Games .......           114            154             59             93            420
Incr (Decr) over prior period            (9)            (8)           (10)            (2)           (29)
Slot Revenues ...............     $   131.9      $   142.0      $    45.8      $    90.2      $   409.9
Incr (Decr) over prior period     $    (7.3)     $    (4.0)     $    (5.1)     $    (4.2)     $   (20.6)
Slot Handle .................     $ 1,633.0      $ 1,731.0      $   728.8      $ 1,113.5      $ 5,206.3
Incr (Decr) over prior period     $   (57.2)     $   (24.0)     $   (27.0)     $   (24.4)     $  (132.6)
Slot Win Percentage .........           8.1%           8.2%           6.3%           8.1%           7.9%
Incr (Decr) over prior period      (0.1)pts.      (0.1)pts.      (0.4)pts.      (0.2)pts.      (0.2)pts.
Number of Slot Machines .....         4,084          4,137          1,356          2,159         11,736
Incr (Decr) over prior period             9            319            (80)           (91)           157
 Other Gaming Revenues ......           N/A      $     9.2            N/A      $     0.8      $    10.0
Incr (Decr) over prior period           N/A      $     0.1            N/A      $     0.0      $     0.0
Total Gaming Revenues .......     $   180.3      $   240.4      $    63.1      $   123.8      $   607.5
Incr (Decr) over prior period     $    (4.4)     $   (22.5)     $   (10.3)     $    (8.7)     $   (46.1)
</TABLE>

<TABLE>
<CAPTION>
                                                    Six Months Ended June 30, 1997
                                      -----------------------------------------------------------
                                        Plaza        Taj        Trump      Trump       THCR
                                      Associates  Associates   Indiana     Marina   Consolidated*
                                      ----------  ----------   -------     ------   -------------
                                                        (dollars in millions)
<S>                                    <C>         <C>         <C>        <C>        <C>   
Table Game Revenues ..............     $   45.5    $  107.8    $   22.6   $   37.3   $   213.2
Table Game Drop ..................     $  323.8    $  644.8      $117.8      244.9   $ 1,331.3
Table Win Percentage .............         14.1%       16.7%       19.1%      15.2%       16.0%
Number of Table Games ............          123         162          69         95         449
Slot Revenues ....................     $  139.2    $  146.0    $   50.9   $   94.4   $   430.5
Slot Handle ......................     $1,690.2    $1,755.0    $  755.8   $1,137.9   $ 5,338.9
Slot Win Percentage ..............          8.2%        8.3%        6.7%       8.3%        8.1%
Number of Slot Machines ..........        4,075       3,818       1,436      2,250      11,579
Other Gaming Revenues ............          N/A    $    9.1         N/A   $    0.8   $     9.9
Total Gaming Revenues ............     $  184.7    $  262.9    $   73.4   $  132.5   $    653.6
</TABLE>

     Gaming  revenues are the primary source of THCR's  revenues.  The year over
year decrease in gaming revenues was due primarily to Taj Associates last year's
first quarter results which included an unusual  approximately $8 million dollar
table  game win  from one  premium  player,  an  unusually  low  table  game win
percentage  in the current  year and a decline in high-end  international  table
game players due to Asian economic  conditions.  Table games revenues  represent
the amount retained by THCR from amounts  wagered at table games.  The table win
percentage  tends  to be  fairly  constant  over  the  long  term,  but may vary
significantly  in the short term,  due to large  wagers by "high  rollers".  The
Atlantic City industry  table win  percentages  were 15.2% and 15.1% for the six
months ended June 30, 1998 and 1997, respectively. Decreases in revenue at Trump
Indiana are  attributed to the new  facilities  and capacity added over the past
year.

     Substantially  proportionate  to the  decrease in gaming  revenues,  gaming
costs and expenses  decreased  $23,903,000 or 5.8% from the comparable period in
1997. This decrease primarily represents marketing and promotional costs as well
as a lower table game win percentage in the second quarter 1998.



                                       17
<PAGE>

     General and administrative  expenses decreased  $6,505,000 or 4.8% from the
comparative  period in 1997.  This  decrease is primarily  due to  reductions in
advertising,  insurance  and real estate tax expenses  during 1998.  Included in
accounts  receivable  is  $4,400,000  from the  City of  Atlantic  City  pending
completion  of the Plaza  Associates'  successful  appeal of the real estate tax
asessment assigned to Trump World's Fair.

During the second  quarter of 1997,  THCR  revised its  estimates  of the useful
lives of buildings,  building  improvements,  furniture and fixtures  which were
acquired in 1996. Building and building  improvements were reevaluated to have a
forty year life and furniture and fixtures were  determined to have a seven year
life.  During the third quarter of 1997,  Trump Indiana revised its estimates of
the useful life of the  riverboat  and its  improvements  from fifteen to thirty
years. THCR believes these changes more appropriately  reflect the timing of the
economic benefits to be received from these assets during their estimated useful
lives.  For the six months ended June 30, 1998, the net effect of applying these
new lives was to decrease net loss by $2,300,000  and decrease loss per share by
$.07. Additionally,  Taj Associates' depreciation decreased due to furniture and
equipment classifications becoming fully depreciated.

Interest expense increased due to the additional  $100,000,000 Trump AC Mortgage
Notes at 11 1/4% issued on December 10, 1997 by Trump AC together  with Trump AC
Funding II and Trump AC Funding III.

Seasonality

The  casino  industry  in  Atlantic  City and  Indiana  is  seasonal  in nature;
accordingly,  the results of operations  for the period ending June 30, 1998 are
not necessarily indicative of the operating results for a full year.

Important Factors Relating to Forward-Looking Statements

The Private  Securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for  forward-looking  statements so long as those  statements  are identified as
forward-looking  and  are  accompanied  by  meaningful   cautionary   statements
identifying  important  factors  that  could  cause  actual  results  to  differ
materially from those projected in such  statements.  In connection with certain
forward-looking  statements  contained in this Quarterly Report on Form 10-Q and
those  that may be made in the  future by or on behalf of the  Registrants,  the
Registrants  note that there are various factors that could cause actual results
to  differ  materially  from  those  set  forth  in  any  such   forward-looking
statements.  The forward-looking  statements  contained in this Quarterly Report
were  prepared by management  and are qualified by, and subject to,  significant
business,  economic,   competitive,   regulatory  and  other  uncertainties  and
contingencies,  all of which are  difficult or impossible to predict and many of
which are beyond the control of the  Registrants.  Accordingly,  there can be no
assurance that the forward-looking statements contained in this Quarterly Report
will be realized  or that actual  results  will not be  significantly  higher or
lower.  The  statements  have not been audited by,  examined by,  compiled by or
subjected  to  agreed-upon  procedures  by  independent   accountants,   and  no
third-party has independently  verified or reviewed such statements.  Readers of
this Quarterly  Report should consider these facts in evaluating the information
contained  herein.  In addition,  the business and operations of the Registrants
are subject to substantial risks which increase the uncertainty  inherent in the
forward-looking  statements contained in this Quarterly Report. The inclusion of
the forward-looking  statements contained in this Quarterly Report should not be
regarded as a  representation  by the  Registrants  or any other person that the
forward-looking  statements  contained in the Quarterly Report will be achieved.
In light of the foregoing, readers of this Quarterly Report are cautioned not to
place undue reliance on the forward-looking statements contained herein.

ITEM 3-- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Pursuant to the General  Instructions  to Rule 305 of  Regulation  S-K, the
quantitative and qualitative  disclosures  called for by this Item 3 and by Rule
305 of Regulation S-K are inapplicable to the Registrants at this time.



                                       18
<PAGE>

                          PART II -- OTHER INFORMATION

ITEM 1  -- LEGAL PROCEEDINGS


     THCR and certain of its  subsidiaries,  affiliates  and employees have been
involved in various legal proceedings.  In general, THCR has agreed to indemnify
such persons against any and all losses,  claims,  damages,  expenses (including
reasonable  costs,  disbursements  and counsel fees) and liabilities  (including
amounts paid or incurred in satisfaction of  settlements,  judgments,  fines and
penalties) incurred by them in said legal proceedings. Such persons and entities
are vigorously  defending the allegations  against them and intend to vigorously
contest any future proceedings.

     Plaza Associates.  The CRDA, as required, set aside funds for investment in
hotel development projects in Atlantic City undertaken by casino licensees which
result in the construction or rehabilitation of at least 200 hotel rooms.  These
investments  are to  fund  up to 27% of the  cost to  casino  licensees  of such
projects.  In June 1993,  Plaza  Associates made application for such funding to
the CRDA with  respect  to its  proposed  construction  of the Trump  Plaza East
facilities,  demolition of a certain structure adjacent thereto,  development of
an  appurtenant  public park,  roadway and parking area and  acquisition  of the
entire project site. The CRDA, in rulings through January 10, 1995, approved the
hotel  development  project  and,  with respect to same and pursuant to a credit
agreement  between  them,  reserved  to  Plaza  Associates  the  right  to  take
investment tax credits up to approximately $14.2 million.  Plaza Associates has,
except  for  three  small  parcels  discussed  below,   acquired  the  site  and
constructed  and  presently  operates and  maintains  the proposed  hotel tower,
public park, roadway and parking area.

     As part of its approval  and on the basis of its powers of eminent  domain,
the  CRDA,  during  1994,  initiated  certain  condemnation  proceedings  in the
Superior Court of New Jersey,  Atlantic County, to acquire five small parcels of
land within the project site.  Plaza  Associates  has since  acquired two of the
parcels and proceedings  with respect to those parcels have been concluded.  The
court,  in a July 20, 1998 opinion,  directed entry of judgments  dismissing the
CRDA actions with respect to the  remaining  three  parcels,  which if acquired,
would be included in the public park and  parking  area of the  project,  on the
basis of the court's  determination that the CRDA had failed to establish that a
valid primarily  public purpose  justified  acquisition of the parcels.  Written
orders of dismissal were entered by the court on July 28, 1998. The right of the
CRDA to appeal these judgments will expire on September 11, 1998.

     Additionally,  with respect to the two parcels to be included in the public
park portion of the project,  the CRDA,  by a separate  motion,  sought an order
that Plaza  Associates'  application  and credit  agreement be deemed amended to
terminate  the CRDA's  obligation  to acquire  the two parcels and to enable the
CRDA to abandon the condemnation  proceedings with respect to these two parcels.
This motion was opposed by Plaza  Associates.  By order dated April 1, 1998, the
Court  denied the motion but granted the CRDA leave to amend its  pleadings by a
filing  within  14 days from the date  thereof  formally  asserting  a claim for
specific  performance of the alleged  agreement.  The CRDA did not file any such
amended pleading within this permitted time period.

     Also,  the  defendants  in two  of the  condemnation  proceedings  filed  a
separate joint complaint in the New Jersey Superior Court alleging,  among other
claims, that the CRDA and Plaza Associates were wrongfully attempting to deprive
them of property rights in violation of their  constitutional  and civil rights.
Coking, et al. v. Casino Reinvestment  Development Authority, et al., Docket No.
ATL-L-2555-97. The CRDA's motion for summary judgment on the complaint and Plaza
Associates'  motion to dismiss it for  failure to state a claim were  granted by
the New Jersey Superior Court on October 24, 1997 and November 11, 1997.

     Other  Litigation.  On March 13,  1997,  THCR filed a lawsuit in the United
States  District  Court,   District  of  New  Jersey,   against  Mirage  Resorts
Incorporated  ("Mirage"),  the State of New  Jersey  ("State"),  the New  Jersey
Department  of  Transportation   ("NJDOT"),   the  South  Jersey  Transportation
Authority ("SJTA"), the CRDA, the New Jersey Transportation Trust Fund Authority
and others.  THCR was seeking declaratory and injunctive relief to recognize and
prevent  violations  by the  defendants  of the casino  clause of the New Jersey
State  Constitution  and  various  federal  securities  and  environmental  laws
relating to proposed  infrastructure  improvements  in the Atlantic  City marina
area. While this action was pending, defendants State and the CRDA then filed an
action in the New Jersey State Court seeking  declaration  of the claim relating
to the casino clause of the New Jersey State  Constitution.  On May 1, 1997, the
United States  District  Court  dismissed the federal  claims and ruled that the
State constitutional  claims should be pursued in State Court. On April 2, 1998,
the United States Court of Appeals for the Third Circuit affirmed the dismissal;
THCR's  petition to the Third  Circuit for a  rehearing  was denied.  On May 14,
1997, the State Court entered a summary  judgement in favor of the State and the
CRDA,  which was  affirmed by the  Appellate  Division on March 20,  1998.  This
decision is currently being appealed in the State Supreme Court.

     Trump  Indiana.  Commencing in early 1994,  Trump  Indiana  (which was then
wholly owned by Trump),  through its Indiana counsel, had discussions with eight
Indiana  residents  regarding  the  potential  purchase  by  such  residents  of
non-voting stock of Trump Indiana, representing a total of 7.5% of the equity in
Trump  Indiana.  The  purchase  price of the  stock was to have been paid with a
promissory note secured by the stock purchased, although the purchase price


                                       19
<PAGE>

and other material terms of the proposed  purchase were never agreed upon.  Such
discussions did not result in an agreement for, or the purchase of, any stock by
the  residents.  It was  subsequently  determined  to include Trump Indiana as a
wholly  owned  subsidiary  of THCR  Holdings  in  connection  with the June 1995
Offerings.  The  residents  then  asserted  a right to  purchase  stock in Trump
Indiana.  Trump Indiana and THCR did not agree with the residents' assertions of
any such rights with respect to the stock of Trump Indiana or otherwise,  and so
advised the residents. Although discussions had been ongoing with respect to the
resolution of this matter,  on March 29, 1996, in the matter  entitled Keshav D.
Aggarwal, et. al. v. Donald J. Trump, Trump Hotels & Casino Resorts, Inc., Trump
Hotels & Casino Resorts Holdings,  L.P. and Trump Indiana,  Inc., such residents
filed a  complaint  with  respect to this matter in the United  States  District
Court, Southern District of Indiana,  seeking, among other things,  compensatory
and  punitive  damages in an  unspecified  amount  and that the court  order the
defendants  to transfer  ownership of 7.5% of Trump  Indiana to the  plaintiffs.
Trump, THCR, THCR Holdings and Trump Indiana filed an answer to the complaint on
May 31, 1996.  Cross-motions for summary judgment have been filed by all parties
and a decision  regarding  each motion is expected in the near future.  Monetary
settlements  have been reached between all defendants and six of the plaintiffs.
The remaining plaintiffs voluntarily dismissed their demands for the transfer of
ownership in Trump Indiana. A trial date has been set for January 1999. THCR and
the other defendants intend to vigorously contest the allegations  against them.
Further,  management  believes that the further  resolution of these claims will
not have a material adverse effect on THCR.

     Various other legal proceedings are now pending against THCR. Except as set
forth  herein  and in  THCR's  Annual  Report  on Form  10-K for the year  ended
December 31, 1997, THCR considers all such proceedings to be ordinary litigation
incident to the  character  of its  business and not material to its business or
financial  condition.  THCR believes that the resolution of these claims, to the
extent not covered by insurance,  will not,  individually  or in the  aggregate,
have a  material  adverse  effect  on its  financial  condition  or  results  of
operations of THCR.




ITEM 2 -- CHANGES IN SECURITIES AND USE OF PROCEEDS

     None.

ITEM 3 -- DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None.


ITEM 5 -- OTHER INFORMATION

     None.

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

     a. Exhibits:

<TABLE>
<CAPTION>
          Exhibit No.                     Description of Exhibit
          -----------                     ----------------------
<S>                               <C>
            27.1(1)               Financial Data Schedule of Trump Hotels & Casino Resorts, Inc.
            27.2(2)               Financial Data Schedule of Trump Hotels & Casino Resorts Holdings, L.P.
            27.3(2)               Financial Data Schedule of Trump Hotels & Casino Funding, Inc.
</TABLE>

     (1)  Filed  only  with the  Quarterly  Report  on Form 10-Q of THCR for the
          quarter ended June 30, 1998.

     (2)  Filed only with the Quarterly Report on Form 10-Q of THCR Holdings and
          THCR Funding for the quarter ended June 30, 1998.

     b. Current Reports on Form 8-K:

     The  Registrants  did not file any  Current  Reports on Form 8-K during the
period beginning April 1, 1998 and ending June 30, 1998.


                                       20
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                             TRUMP HOTELS & CASINO RESORTS, INC.
                                       (Registrant)

Date: August 14, 1998
                                By:/s/   R. BRUCE MCKEE 
                                   ---------------------------------------------
                                         R. Bruce McKee
                                         Senior Vice President of Corporate
                                         Finance and Chief Financial Officer
                                         (Duly Authorized Officer and Principal
                                         Financial Officer)





                                       21
<PAGE>




                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    TRUMP HOTELS & CASINO RESORTS HOLDINGS, L.P.
                                           (Registrant)

Date:   August 14, 1998
                                    By:     TRUMP HOTELS & CASINO RESORTS, INC.,
                                            its general partner


                                    By: /s/  R. BRUCE MCKEE 
                                       -----------------------------------------
                                             R. Bruce McKee
                                             Senior Vice President of Corporate
                                             Finance and Chief Financial Officer
                                             (Duly Authorized Officer and
                                             Principal Financial Officer)




                                       22
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                TRUMP HOTELS & CASINO RESORTS FUNDING, INC.
                                          (Registrant)

Date: August 14, 1998

                                By: /s/   R. BRUCE MCKEE 
                                   ---------------------------------------------
                                          R. Bruce McKee
                                          Senior Vice President of Corporate
                                          Finance and Chief Financial Officer
                                          (Duly Authorized Officer and Principal
                                          Financial Officer)

















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