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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB
(Mark one)

   /X/      Quarterly Report under Section 13 or 15(d) of the Securities
            Exchange Act of 1934

            For the quarterly period ended March 31, 2005

   / /      Transition Report under Section 13 or 15(d) of the Exchange Act

            For the transition period from __________ to __________

                        Commission file number 333-112603

                            CATSKILL LITIGATION TRUST
                            -------------------------
 (Exact Name of Small Business Issuer as Specified in Its Declaration of Trust)

              DELAWARE                                           16-6547621
-------------------------------------------            -------------------------
     (State or Other Jurisdiction of                         (I.R.S. Employer
     Incorporation or Organization)                          Identification No.)

                       C/O CHRISTIANA BANK & TRUST COMPANY
                                1314 King Street
                           Wilmington, Delaware 19801
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (302) 888-7400
--------------------------------------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)


--------------------------------------------------------------------------------
              (Former Name, Former Address and Former Fiscal Year,
                          if Changed Since Last Report)

            Check whether the issuer (1) filed all reports  required to be filed
by  Section  13 or 15(d) of the  Exchange  Act during the past 12 months (or for
such shorter  period that  Catskill  Litigation  Trust was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes /X/ No / /

          As of May 13,  2005,  22,702,896  Units of  beneficial  interest  were
outstanding.

   Transitional Small Business Disclosure Format (check one): Yes / /  No /X/

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







                            CATSKILL LITIGATION TRUST


                                   FORM 10-QSB


                                      INDEX

PART I - FINANCIAL INFORMATION                                           Page

            ITEM 1. CONDENSED FINANCIAL STATEMENTS (unaudited)

            Condensed Balance Sheet as of March 31, 2005                   3

            Condensed Statements of Operations for the three
            months ended March 31, 2005  and for the
            period January 12, 2004 (Date of Inception) to March 31, 2004  4

            Condensed Statements of Cash Flows for the period
            three months ended March 31, 2005 and for the period
            January 12, 2004 (Date of Inception) to March 31, 2004         5

            Notes to Condensed Financial Statements                        6-9

            ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
            OR PLAN OF OPERATION                                          10-12

            ITEM 3.  CONTROLS AND PROCEDURES                              12

PART II - OTHER INFORMATION

            ITEM 1.  LEGAL PROCEEDINGS                                    13

            ITEM 6.  EXHIBITS                                             13

SIGNATURES                                                                14

                                       2





                         PART I - FINANCIAL INFORMATION

Item 1.     FINANCIAL STATEMENTS

                               CATSKILL LITIGATION TRUST
                                CONDENSED BALANCE SHEET
                                     March 31, 2005
                                      (Unaudited)

ASSETS
   Current Assets
         Cash and cash equivalents                                    $   6,217
                                                                      ---------
   Total Current Assets                                                   6,217
                                                                      ---------
TOTAL ASSETS                                                          $   6,217
                                                                      =========

LIABILITIES AND TRUST DEFICIENCY
      Current Liabilities
           Accrued legal and administrative expenses                  $ 100,044
           Line of credit-related party                                 500,000
                                                                      ---------
      Total Current Liabilities                                       $ 600,044
Trust Deficiency
      Units of Beneficial Interest: authorized
      22,702,896; issued and outstanding 22,702,896                      18,591
      Accumulated deficit                                              (612,418)
                                                                      ---------
      Total Trust Deficiency                                           (593,827)
                                                                      ---------
TOTAL LIABILITIES AND TRUST DEFICIENCY                                $   6,217
                                                                      =========

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

                                       3




                            CATSKILL LITIGATION TRUST
                       CONDENSED STATEMENTS OF OPERATIONS


                                               (Unaudited)       For the Period from
                                                 For the           January 12, 2004
                                            Three Months Ended   (Date of Inception) to
                                              March 31, 2005       March 31, 2004
                                            -------------------------------------------

General and Administrative Expenses:
Litigation Trustee Fees                         $     30,000       $     26,130
Administrative Trustee Fees                            1,500              6,000
Consulting Fees                                        1,500              6,000
Legal Fees                                           156,250             71,204
Accounting Fees                                       10,000             17,183
Interest                                               6,875               --
Other                                                  2,187                990
                                                ------------       ------------
Total General and Administrative Expenses       $    208,312       $    127,507
Other Income                                             954               --
                                                ------------       ------------
Net Loss                                        $   (207,358)      $   (127,507)
                                                ============       ============
Loss per unit outstanding                       $      (0.01)      $      (0.01)
                                                ============       ============
Weighted average units outstanding                22,702,896         22,702,896
                                                ============       ============

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

                                       4





                            CATSKILL LITIGATION TRUST
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                                                               For the Period from
                                                                           For the              January 12, 2004
                                                                      Three Months Ended     (Date of Inception) to
                                                                        March 31, 2005            March 31, 2004
                                                                        -----------------------------------------------
OPERATING ACTIVITIES
Net Loss                                                                  $(207,358)                $(127,507)
   Adjustments to reconcile net loss to net cash used in operations:
      Imputed interest expense                                                6,875
      Decrease in accounts payable                                          (47,302)
      Increase in accrued legal and administrative expenses                    --                     127,507
                                                                          ---------                 ---------
Net cash used in operating activities                                     $(247,785)                $    --
                                                                          ---------                 ---------
      Decrease in Cash                                                    $(216,276)                $    --
Cash and cash equivalents-beginning of period                             $ 222,493                 $    --
                                                                          ---------                 ---------
Cash and cash equivalents- end of period                                  $ (25,292)                $    --
                                                                          =========                 =========


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

                                       5




                            CATSKILL LITIGATION TRUST

       Notes to Condensed Financial Statements--March 31, 2005 (Unaudited)

NOTE 1 - THE TRUST

         The  Catskill  Litigation  Trust is a  Delaware  statutory  trust  (the
         "Litigation Trust") formed by Empire Resorts,  Inc. ("Empire Resorts"),
         Monticello  Raceway  Management,  Inc.,  ("MRMI"),   Monticello  Casino
         Management,  L.L.C.,  Monticello Raceway  Development  Company,  L.L.C.
         ("MRDC") and Mohawk Management, L.L.C. ("Mohawk"). On January 12, 2004,
         22,702,896 units of beneficial  interest were issued to the members and
         stockholders of those entities. At that time, Empire Resorts,  Catskill
         Development,  L.L.C.  ("Catskill"),  MRMI, Mohawk, Joseph E. Bernstein,
         Paul A. deBary (Messrs.  Bernstein and deBary are hereinafter  referred
         to as the "Litigation  Trustees") and Christiana Bank and Trust Company
         (the "Administrative Trustee") entered into the Declaration of Trust of
         Catskill Litigation Trust (the "Declaration of Trust").

         In the Declaration of Trust, Catskill,  MRDC and Mohawk assigned to the
         Litigation Trust all of their claims under or related to the alienation
         and frustration of their agreements and business relations with the St.
         Regis Mohawk Tribe and their rights to any judgment or settlement  that
         may arise from any  litigation  relating  to two  litigations  entitled
         Catskill  Development,  L.L.C., Mohawk Management L.L.C. and Monticello
         Raceway   Development   Company   L.L.C.,   Plaintiffs  v.  Park  Place
         Entertainment  Corporation,  Defendant  (the "PPE  Case") and  Catskill
         Development,  L.L.C.,  Mohawk  Management,  L.L.C.,  Monticello Raceway
         Development Company,  L.L.C.,  Plaintiffs v. Gary Melius, Ivan Kaufman,
         Walter Horn,  President  R.C. - St. Regis  Management  Company,  et al,
         Defendants (hereinafter referred to, collectively with the PPE Case, as
         the "Litigation"). If at any time the Litigation Trustees determine, in
         their absolute discretion,  that the assets of the Litigation Trust are
         not sufficient to justify its continuance,  the Litigation Trustees are
         authorized  to  terminate  the  Litigation  Trust.  In  addition,   the
         Litigation  Trust is to terminate on the date that all  litigation  has
         been fully  prosecuted to final  judgment or  dismissal,  including all
         appeals,  and all Litigation  Trust assets have been distributed to the
         Litigation Trust's beneficiaries.

NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BASIS OF PRESENTATION

         These condensed  financial  statements have been prepared in accordance
         with accounting  principles  generally accepted in the United States of
         America,  and with Form  10-QSB and Item 310 of  Regulation  S-B of the
         Securities  and Exchange  Commission.  In the opinion of the Litigation
         Trustees,  the accompanying  condensed financial statements contain all
         the  adjustments   necessary   (consisting  only  of  normal  recurring
         accruals)  to  present  fairly  the  financial  position,   results  of
         operations and cash flows as of March 31, 2005 and for the three months
         then ended. Operating results for the three months ended March 31, 2005
         are not  necessarily  indicative  of the results that would be expected
         for the year ended December 31, 2005.

         Certain  information  and  footnote  disclosures  normally  included in
         financial statements prepared in accordance with accounting  principles
         generally accepted in the United States of America have been condensed

                                       6





         or omitted. It is suggested that these financial  statements be read in
         conjunction  with the audited  financial  statements  and notes thereto
         included in the report on Form  10-KSB for the period  January 12, 2004
         (date of inception) to December 31, 2004.

         USE OF ESTIMATES IN THE FINANCIAL STATEMENTS

         The  preparation of financial  statements in conformity with accounting
         principles  generally accepted in the United States of America requires
         the Litigation  Trustees to make estimates and assumptions  that affect
         the  reported  amounts  of assets and  liabilities  and  disclosure  of
         contingent  assets  and  liabilities  at  the  date  of  the  financial
         statements and the reported amounts of revenues and expenses during the
         reporting period. Actual results could differ from those estimates.

         CASH AND CASH EQUIVALENTS

         Cash and cash equivalents include cash on account,  demand deposits and
         certificates  of deposit with  original  maturities  of three months or
         less at  acquisition  and money market  funds.  From time to time,  the
         Litigation  Trust  maintains  significant  cash  balances  that are not
         covered by the Federal Deposit  Insurance  Corporation.  The Litigation
         Trust has not incurred any losses in such  accounts and the  Litigation
         Trustees  believe it is not exposed to any  significant  credit risk on
         cash.

         INCOME TAXES

         For federal income tax purposes,  the Litigation  Trust is treated as a
         grantor trust.  Under the grantor trust rules, each holder of a unit of
         beneficial  interest is treated as the owner of his or her share of the
         Litigation  Trust's  assets.  The treatment of income and expense items
         under accounting  principles generally accepted in the United States of
         America  may differ  from the tax  treatment  of such  items.  Expenses
         incurred by the Litigation Trust will be capitalized for tax purposes.

NOTE 3 - LINE OF CREDIT-RELATED PARTY

         Empire Resorts, a related party, has provided the Litigation Trust with
         a line of credit of up to $2,500,000. The line of credit can be used to
         pay  all  expenses  of  the  Litigation   Trust   permitted  under  the
         Declaration of Trust,  including but not limited to  professional  fees
         and  the  fees  and  expenses  of  the  Litigation  and  Administrative
         Trustees.  The line of  credit  is  non-interest  bearing  and is to be
         repaid from any amounts received from litigation settlements or awards.
         The line of  credit  expires  upon the  termination  of the  Litigation
         Trust.

         As of March 31,  2005,  $500,000  has been  drawn  against  the line of
         credit.

         The  Litigation  Trust  imputed  interest on the  borrowings  at Empire
         Resorts'  borrowing rate (5.50% per annum at March 31, 2005).  Interest
         expense  for the three  months  ended March 31, 2005 and for the period
         January 12,  2004 (date of  inception)  to March 31,  2004  amounted to
         $6,875 and $0, respectively,  and was deemed contributed capital to the
         Litigation Trust.

                                       7





NOTE 4 - DISTRIBUTIONS

         The  distribution  of any net proceeds from  litigation  settlements or
         awards,  after  amounts  are  applied to cover all  current or expected
         expenses of the Litigation  Trust, is to be made at the sole discretion
         of the Litigation Trustees and will be distributed as follows:

         First:  To  pay  the  Litigation   Trustees  their  fees  arising  from
         litigation settlements or awards. (See Note 5)

         Second: To reimburse $7,500,000 to Empire Resorts for expenses incurred
         in  connection  with  the  Litigation  prior  to the  formation  of the
         Litigation Trust and, in addition,  to repay Empire Resorts any amounts
         outstanding under the line of credit.

         Third: If any amount remains after the above requirements are met, such
         amount  remaining  is to be  divided  among  the  beneficiaries  of the
         Litigation  Trust in proportion  to their  ownership of units as of the
         date the distribution is made.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

         COMPENSATION OF LITIGATION TRUSTEES

         Each of the two Litigation  Trustees is entitled to annual compensation
         of $60,000 plus  reimbursement  of expenses  incurred  carrying out the
         purpose of the Litigation Trust. In addition, one litigation trustee is
         entitled  to 4%,  and the other 1%, of any  litigation  settlements  or
         awards.

         COMPENSATION OF THE ADMINISTRATIVE TRUSTEE

         The  Administrative  Trustee is  entitled  to a $5,000  acceptance  fee
         (which  includes  the  first  month  administrative  fee) and a monthly
         administrative fee of $500. In addition,  the Administrative Trustee is
         entitled  to a custody  fee on certain  cash  balances  and  marketable
         securities of .5% per annum on the first  $10,000,000 of fair value and
         3% on the excess and reimbursement for certain fees and expenses.

         EXPENSES PAID PRIOR TO THE FORMATION OF THE LITIGATION TRUST

         As  discussed  in Note 4, the  Litigation  Trust is obligated to pay to
         Empire  Resorts  up to  $7,500,000.  This  amount  represents  expenses
         incurred prior to the formation of the Litigation  Trust. The amount is
         payable solely from the proceeds of litigation settlements or awards.

         REPAYMENTS OF AMOUNTS DRAWN UNDER THE LINE OF CREDIT-RELATED PARTY

         As  discussed  in Note 4, the  expenses  of the  Litigation  Trust  are
         expected to be paid from draws under the line of credit.  Amounts drawn
         under the line of credit  are to be repaid  from any  amounts  received
         from litigation settlements or awards.

         ADDITIONAL AMOUNTS PAYABLE TO APPEALS COUNSEL

         Under the terms of the Litigation Trust's arrangement with the law firm
         handling  its appeal,  additional  fees in an  aggregate  amount not to
         exceed  $100,000 may be payable to that firm.  The exact amount payable
         in the event of a reversal of the decision by the trial court will vary
         from  $50,000  to  $100,000  depending  on the  precise  nature  of the
         outcome.

                                       8





NOTE 6 - CERTAIN RELATIONSHIPS

         The Litigation  Trustees are both currently  members of Empire Resorts'
         Board of Directors.

NOTE 7 - SUBSEQUENT EVENTS

         Following  the re-entry of an adverse  judgment with respect to the PPE
         case  in the  District  Court  in  the  fourth  quarter  of  2004,  the
         Litigation Trust  recommenced an appeal to the Court of Appeals for the
         Second Circuit.  The appellant's brief in the appeal was filed on April
         1, 2005.  A reply  brief is  currently  due on June 9, 2005.  It is not
         likely that the appeal will be scheduled  for oral  arguments  prior to
         late  August of 2005 or that a decision  in the  appeal  will be issued
         prior to the first quarter of 2006.

                                       9





ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Forward-Looking Statements

            This Report on Form  10-QSB  contains  "forward-looking  statements"
within the meaning of Section 27A of the  Securities Act of 1933, as amended and
Section 21E of the  Securities  Exchange Act of 1934, as amended (the  "Exchange
Act"). All statements other than statements of historical facts included in this
Report,  including  without  limitation,  the  statements  under  "General," and
"Liquidity  and  Capital   Resources,"  are  forward-looking   statements.   All
subsequent  written  and oral  forward-looking  statements  attributable  to the
Litigation  Trust or persons  acting on its behalf are  expressly  qualified  in
their entirety by the cautionary statements.

            The following  discussions  should be read in  conjunction  with our
financial   statements  and  the  related  notes  thereto  and  other  financial
information  appearing  elsewhere  in  this  report.  The  following  discussion
contains  forward-looking  statements that involve risks and uncertainties.  Our
actual  results  could  differ   materially   from  those   anticipated  in  the
forward-looking  statements  as a result of  various  factors,  including  those
discussed elsewhere in this report.

General

            We are a statutory  trust created under  Delaware law. Our formation
was a condition to the consolidation of Empire Resorts, Inc. ("Empire Resorts"),
Monticello Raceway  Management,  Inc.,  ("MRMI"),  Monticello Casino Management,
L.L.C.  ("MCM"),  Monticello Raceway Development  Company,  L.L.C.  ("MRDC") and
Mohawk Management, L.L.C. ("Mohawk"). Also as a condition to that consolidation,
each of Catskill Development,  L.L.C. ("Catskill"),  MRDC, and Mohawk, agreed to
assign  to us all of  their  claims  under  or  related  to the  alienation  and
frustration of their agreements and business relations with the St. Regis Mohawk
Tribe.  That  assignment  included rights to any proceeds from any settlement or
award that may arise from any litigation  relating to that claim. Our litigation
claims arise from the efforts of each of Catskill,  MRDC,  and Mohawk to develop
with the St. Regis Mohawk Tribe a gaming  casino in  Monticello,  New York.  The
plaintiffs  spent  several  years and  substantial  funds to develop  and obtain
required  approvals  for the  casino.  Subsequently,  Park  Place  Entertainment
Corporation,  the world's largest gaming corporation and Atlantic City's largest
casino  operator,  entered into an agreement  providing for the St. Regis Mohawk
Tribe to commit their future  casino  development  efforts  exclusively  to Park
Place  Entertainment  Corporation.  That  agreement  conflicted  with the Mohawk
Tribe's agreements with Catskill, MRDC and Mohawk.

            There is one lawsuit presently pending and one lawsuit that has been
discontinued.  The  first  lawsuit  is  Catskill  Development,   L.L.C.,  Mohawk
Management,   L.L.C.,  and  Monticello  Raceway  Development  Company,   L.L.C.,
Plaintiffs. v. Park Place Entertainment  Corporation,  Defendant.  (Civil Action
No. 00CIV8660 (CM) (GAY)) (United States District Court Southern District of New
York)  referred to herein as the "PPE case".  This  lawsuit had  initially  been
dismissed  on  a  motion  for  summary  judgment.   However,   the  trial  court
subsequently  vacated the earlier  decision  granting  summary  judgment to Park
Place  Entertainment,  in order to consider new  evidence  and allow  additional
discovery proceedings.  After these proceedings were completed the dismissal was
reinstated.  An appeal has been taken and a brief has been filed by the Trust. A
reply brief is currently  due on June 9, 2005.  It is not likely that the appeal
will be  scheduled  for oral  arguments  prior to late  August of 2005 or that a
decision in the appeal will be issued  prior to the first  quarter of 2006.  The
second lawsuit is Catskill Development,  L.L.C., Mohawk Management,  L.L.C., and
Monticello Raceway Development Company, L.L.C., Plaintiffs. against Gary Melius,
Ivan Kaufman, Walter Horn, President R.C. - St. Regis Management Company, et al,
Defendants. (Index No. 891/03) (Supreme Court of the State of New York County of

                                       10





Sullivan). This lawsuit has been discontinued under an agreement that permits it
to be  refiled  at a  future  date  without  being  barred  by  the  statute  of
limitations.  Our purposes are the prosecution of our litigation  claims through
the recovery of any settlement or final  judgments and the  distribution  of the
net amount of any such recoveries to our beneficiaries.

            The   administration  of  our  Litigation  Trust  will  involve  the
authentication  and payment of fees and expenses for legal and related  services
in connection with our litigation  claims,  reporting and regulatory  compliance
and  the   maintenance   of  litigation,   financial  and  unitholder   records.
Administrative expenses are currently estimated to be approximately $200,000 per
year, including the fees of the litigation and administrative trustees, auditors
and  accountants  and other  support  services.  Legal  fees and other  expenses
involved in our  litigation  claims are impossible to predict with any degree of
accuracy.  No  assurance  can be given that the amounts  available to us for the
payment of such  expenses  under our line of credit will be  sufficient to carry
our  litigation  claims through to a successful  conclusion or that  alternative
funds will be available for such purpose.

            Our unit holders will only be entitled to the net proceeds  from any
settlement or award,  if any, of our litigation  claims after the payment of our
expenses, the fees of our litigation trustees, any amounts outstanding under our
line of credit and  $7,500,000  to Empire  Resorts  for  reimbursement  of prior
expenses incurred in connection with our litigation claims.


RESULTS OF OPERATIONS

For the three months  ended March 31, 2005,  we reported a net loss of $207,358.
Included  in these net losses are legal fees of  $156,250  (of which  legal fees
related to litigation were $144,250),  and  administrative  expenses of $45,187,
offset by dividend income of $954, but no proceeds from any litigation.  For the
period January 12, 2004 (date of inception)  through March 31, 2004, we reported
a net loss of $127,507.  Included in this net loss are legal fees of $71,204 (of
which  legal fees  related  to  litigation  were  $65,489),  and  administrative
expenses of $56,303  offset by dividend  income of $0, but no proceeds  from any
litigation.

The  first  quarter  results  reflect   increased  legal  expenses  relating  to
litigation due to the  preparation  of briefs for the appeal,  but reduced legal
fees related to administration  due to the initiation of a flat fee arrangement.
Following  the re-entry of an adverse  judgment  with respect to the PPE case in
the  District  Court in the fourth  quarter of 2004,  the Trust  recommenced  an
appeal to the court of Appeals for the Second Circuit.  Our briefs in the appeal
were filed on April 1, 2005. A reply brief is currently  due on June 9, 2005. It
is not likely that the appeal will be scheduled for oral arguments prior to late
August of 2005 or that a  decision  in the  appeal  will be issued  prior to the
first quarter of 2006. Under our agreement with counsel arguing the appeal, fees
related to arguing the appeal will be contingent on the resulting decision. As a
result, we do not expect  significant  expenses related to the appeal or a trial
(which is itself  dependent  on the  outcome of the  appeal)  until at least the
first quarter of 2006.

On June 1, 2004, we filed a Voluntary  Discontinuance and Tolling Agreement with
respect to the second  lawsuit.  Since  there are many issues of fact and law in
the PPE case  which  relate  to  matters  that  are also at issue in the  second
lawsuit,  we believe that,  as long as the right to recommence  the suit without
regard to the statute of limitations was preserved,  the  discontinuance of this
suit was  appropriate  in order to avoid the cost of  maintaining  two  separate
lawsuits.

                                       11





LIQUIDITY AND CAPITAL RESOURCES

            Empire Resorts has provided us with an irrevocable line of credit of
up to $2,500,000  to provide funds to pay any and all of our expenses  permitted
under the Declaration of Trust. No interest is payable on amounts advanced under
our line of  credit.  Amounts  outstanding  under our line of  credit  are to be
repaid by us from proceeds  received from any  settlement or award in connection
with our  litigation  claims  after  payment of an amount  necessary  to pay our
Litigation  Trustees the fees for their services as set forth in the Declaration
of Trust. Repayments of amounts outstanding under our line of credit may be made
as a whole or in part  from  time to time at any  time  without  notice.  We may
reborrow any amounts so repaid. Our line of credit will remain in full force and
effect until our  termination.  The  Litigation  Trust  imputes  interest on the
borrowings at Empire Resorts borrowing rate (5.5% per annum at March 31, 2005).

            Empire Resorts is a holding company, owning all the capital stock or
membership  interests of certain  other  entities.  Empire  Resorts is therefore
dependent  on these other  entities to pay  dividends or make  distributions  in
order to generate  internal cash flow and to satisfy its obligations,  including
its obligations  under our line of credit.  There can be no assurance,  however,
that these other entities will generate  enough revenue to pay cash dividends or
make cash  distributions.  In addition,  these entities may enter into contracts
that limit or prohibit their ability to pay dividends or make distributions.

            Empire Resorts had no operating revenue during the fiscal year ended
December  31, 2003 and  operating  revenue of $44.9  million for the fiscal year
ended  December 31, 2004 and $16.6  million for the three months ended March 31,
2005 and sustained net operating  losses of  approximately  $8.0, $12.7 and $3.2
million,   respectively,   during  such   periods.   Although   Empire   Resorts
significantly  increased  its level of  operations  during  the third and fourth
quarters of 2004 and the first quarter of 2005, it has yet to  demonstrate  that
such  operations  can be profitable.  Therefore,  there can be no assurance that
Empire Resorts will have the ability to meet its  obligations  under our line of
credit.

ITEM 3.  CONTROLS AND PROCEDURES

(a) The Litigation  Trust carried out an evaluation,  under the  supervision and
with the participation of the Trust's management,  including Joseph E. Bernstein
(acting Chief  Executive  Officer) and Paul A. deBary  (acting  Chief  Financial
Officer),  the Litigation Trust's Litigation  Trustees,  of the effectiveness of
the design and  operation of the  Litigation  Trust's  "disclosure  controls and
procedures", as such term is defined in Exchange Act Rule 15d-15e, as of the end
of the  period  covered by this  report.  Based  upon that  evaluation,  Messrs.
Bernstein  and deBary have  concluded  that the  Litigation  Trust's  disclosure
controls and  procedures  were  effective as of the end of the period covered by
this report to provide  reasonable  assurance  that  information  required to be
disclosed by the Litigation  Trust in reports that it files or submits under the
Exchange Act is recorded,  processed,  summarized  and reported  within the time
periods specified in SEC rules and forms.

(b) There have been no significant  changes in the Litigation  Trust's  internal
controls or in other  factors  that could  significantly  affect the  Litigation
Trust's  internal  controls  subsequent to the date the Litigation Trust carried
out this evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

            A control  system,  no matter how well  conceived and operated,  can
provide only  reasonable,  not absolute  assurance  that the  objectives  of the
control  system are met.  Because of the  inherent  limitations  in all  control
systems,  no internal  controls can provide absolute  assurance that all control
issues and instances of fraud, if any, within a company have been detected.

                                       12



                          PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

            We are a statutory  trust created under  Delaware law. Our formation
was a condition to the consolidation of Empire Resorts with MRMI, MCM, MRDC, and
Mohawk.  Also as a condition to that consolidation,  each of Catskill,  MRDC and
Mohawk,  agreed to  assign to us all of their  claims  under or  related  to the
alienation and frustration of their  agreements and business  relations with the
St. Regis Mohawk Tribe. That assignment included rights to any proceeds from any
settlement or award that may arise from any  litigation  relating to that claim.
Our  litigation  claims  arise from the  efforts of each of  Catskill,  MRDC and
Mohawk to develop with the St. Regis Mohawk Tribe a gaming casino in Monticello,
New York.  We spent several  years and  substantial  funds to develop and obtain
required  approvals  for the  casino.  Subsequently,  Park  Place  Entertainment
Corporation,  the world's largest gaming corporation and Atlantic City's largest
casino  operator,  entered into an agreement  providing for the St. Regis Mohawk
Tribe to commit their future  casino  development  efforts  exclusively  to Park
Place  Entertainment  Corporation.  That  agreement  conflicted  with the Mohawk
Tribe's agreements with Catskill MRDC and Mohawk. There is one lawsuit presently
pending  and one  lawsuit  that has been  discontinued.  The  first  lawsuit  is
Catskill Development,  L.L.C., Mohawk Management, L.L.C., and Monticello Raceway
Development   Company,   L.L.C.,   Plaintiffs.   v.  Park  Place   Entertainment
Corporation,  Defendant.  (Civil Action No. 00CIV8660  (CM)(GAY)) (United States
District Court Southern  District of New York).  This lawsuit had initially been
dismissed on a motion for summary judgment. However, the trial court vacated the
earlier decision granting summary judgment to Park Place Entertainment, in order
to allow  consideration  of new evidence and additional  discovery  proceedings.
Following those  proceedings  judgment in favor of the defendant was reinstated.
This  judgment  has been  appealed.  Briefs  have been or are being  filed,  but
arguments are not expected to be heard prior to the third  quarter of 2005.  The
second lawsuit is Catskill Development,  L.L.C., Mohawk Management,  L.L.C., and
Monticello Raceway Development Company, L.L.C., Plaintiffs. against Gary Melius,
Ivan Kaufman, Walter Horn, President R.C. - St. Regis Management Company, et al,
Defendants. (Index No. 891/03) (Supreme Court of the State of New York County of
Sullivan). This lawsuit has been discontinued under an agreement that permits it
to be  refiled  at a  future  date  without  being  barred  by  the  statute  of
limitations.  Our  purposes  are the  prosecution  of our claims now through the
recovery of any settlement or final  judgments and the  distribution  of the net
amount of any such recoveries to our beneficiaries.

ITEM 6.  EXHIBITS

         a:  Exhibits

         *31.1       Certification of Acting Chief Executive Officer pursuant to
                     Section 302 of the Sarbanes-Oxley Act of 2002.

         *31.2       Certification of Acting Chief Financial Officer pursuant to
                     Section 302 of the Sarbanes-Oxley Act of 2002.

         *32.1       Certification   of  the  Acting  Chief  Executive   Officer
                     pursuant  to 18 U.S.C.  Section  1350  adopted  pursuant to
                     Section 906 of the Sarbanes-Oxley Act of 2002.

         *32.2       Certification   of  the  Acting  Chief  Financial   Officer
                     pursuant  to 18 U.S.C.  Section  1350  adopted  pursuant to
                     Section 906 of the Sarbanes-Oxley Act of 2002.

         *Filed herewith

                                       13





                                   SIGNATURES

            In accordance with the  requirements  of the Exchange Act,  Catskill
Litigation  Trust  caused  this  report  to be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.

                                            CATSKILL LITIGATION TRUST
                                            (Registrant)



DATE:  May 13, 2005                         By: /s/ Joseph E. Bernstein
                                                -----------------------------
                                                Joseph E. Bernstein
                                                Litigation Trustee



DATE:  May 13, 2005                         By: /s/ Paul A. deBary
                                                -----------------------------
                                                Paul A. deBary
                                                Litigation Trustee

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