<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

( X )    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended:             March 31, 2000
                                         --------------------------------------

                                       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:                 333-49715
                                      -----------------------------------------

                        ALADDIN GAMING ENTERPRISES, INC.
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                 Nevada                                88-0379695
--------------------------------------  ---------------------------------------
 (State or other jurisdiction of        (I.R.S. Employer Identification No.)
  incorporation or organization)

831 Pilot Road, Las Vegas, Nevada                                  89119
------------------------------------------------------------ ------------------
(Address of principal executive offices)                         (Zip Code)

                                 (702) 736-7114
-------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has 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 registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                      YES      X      NO
                                           ---------      -------

Indicate the number of shares outstanding of the issuer's classes of common
stock, as of March 31, 2000.

Class A Common Stock, no par value,
  2,000,000 shares authorized                           1,107,500 issued
Class B Common Stock, no par value,
  Non-voting, 8,000,000 shares authorized               2,215,000 issued


<PAGE>

                        ALADDIN GAMING ENTERPRISES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                        PAGE NO.
                                                                                                      ------------
<S>                <C>                                                                                <C>
PART I             FINANCIAL INFORMATION

  Item 1.          Financial Statements

                   Balance Sheets
                     March 31, 2000 and December 31, 1999.................................                 1

                   Statements of Operations
                     For the three months ended March 31, 2000 and 1999 and for the
                     period from inception (December 3, 1997) through March 31, 2000......                 2

                   Statements of Stockholders' Equity
                     For the period from inception (December 3, 1997) through March 31,
                     2000.................................................................                 3

                   Statements of Cash Flows
                     For the three months ended March 31, 2000 and 1999 and for the
                     period from inception (December 3, 1997) through March 31, 2000......                 4

                   Notes to the Consolidated Financial Statements.........................                5-6

  Item 2.          Management's Discussion and Analysis of Financial Condition and
                     Results of Operations................................................                7-10

  Item 3.          Quantitative and Qualitative Disclosures About Market Risk.............                  11

PART II            OTHER INFORMATION

  Item 6.          Exhibits and Reports on Form 8-K.......................................                 11

Signatures         .......................................................................                 12

Exhibit Index      .......................................................................                 13
</TABLE>


                                      i
<PAGE>

PART I   FINANCIAL INFORMATION

ITEM 1   FINANCIAL STATEMENTS

                        ALADDIN GAMING ENTERPRISES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                 BALANCE SHEETS
                   AS OF MARCH 31, 2000 AND DECEMBER 31, 1999
                                 (IN THOUSANDS)
<TABLE>
<CAPTION>
                                                                         March 31, 2000         December 31, 1999
                                                                         --------------         -----------------
                                                                           (unaudited)
<S>                                                                      <C>                    <C>
                             ASSETS

Cash                                                                          $      1                  $      1
Investment in unconsolidated affiliate                                           6,181                     8,562
                                                                         ==============         =================
                                                                              $   6,182                 $   8,563
                                                                         ==============         =================

                LIABILITIES AND MEMBERS' EQUITY

Payable to related party                                                      $      6                  $      4

Common Stock:

Class A, no par value, 2,000,000 shares authorized, 1,107,500
shares issued and outstanding as of March 31, 2000 and
December 31, 1999.
Class B, no par value and non-voting 8,000,000 shares
authorized, 2,215,000 shares issued and outstanding, and
2,215,000 shares reserved pursuant to the warrant agreement as
of March 31, 2000 and December 31, 1999.                                        13,247                    13,247

Additional paid-in capital                                                      14,420                    14,420

Deficit accumulated during the development stage                               (21,491)                  (19,108)
                                                                         ==============         =================
                                                                              $  6,182                  $  8,563
                                                                         ==============         =================
</TABLE>


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


                                       1
<PAGE>

                        ALADDIN GAMING ENTERPRISES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                            STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                               AND FOR THE PERIOD
            FROM INCEPTION (DECEMBER 3, 1997) THROUGH MARCH 31, 2000
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                                                    For the period
                                                                                                  December 3, 1997
                                                        For the three         For the three            (inception)
                                                         months ended          months ended                through
                                                       March 31, 2000        March 31, 1999         March 31, 2000
                                                          (unaudited)           (unaudited)            (unaudited)
                                                       --------------        --------------       ----------------
<S>                                                    <C>                   <C>                  <C>
Other (income) expense                                    $        1            $        1             $        5

Equity in loss of unconsolidated affiliate                     2,382                 1,969                 21,486

Income tax expense                                                 -                     -                      -

                                                       --------------        --------------       ----------------
Net loss accumulated during the
development stage                                         $    2,383            $    1,970             $   21,491
                                                       --------------        --------------       ----------------

Basic and diluted loss per share                          $    (0.72)           $    (0.59)            $    (6.47)

Shares used in per share calculation                       3,322,500             3,322,500              3,322,500
</TABLE>


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


                                       2
<PAGE>

                        ALADDIN GAMING ENTERPRISES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                FOR THE PERIOD FROM INCEPTION (DECEMBER 3, 1997)
                             THROUGH MARCH 31, 2000
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>                                   Common
                                             Stock         Additional
                                            Class A          Paid-in       Retained
                                          and Class B        Capital       Earnings         Total
                                          -----------      ----------      ---------      ---------
<S>                                       <C>              <C>             <C>            <C>
BALANCE, DECEMBER 3, 1997                    $     -         $     -       $      -       $      -

Issuance of Class A common stock,
1 share issued                                     -               1              -              1
                                          -----------      ----------      ---------      ---------

BALANCE, DECEMBER 31, 1997                         -               1              -              1

Net loss for the period                            -               -        (10,620)       (10,620)

Issuance of Class A common stock,
  1,107,499 shares issued, and
  Class B common stock, 2,215,000
  shares issued                               13,247               -              -         13,247

Issuance of Warrants to purchase
  Class B common stock, 2,215,000
  Warrants issued                                  -          15,000              -         15,000

Equity costs from unconsolidated
  affiliate                                        -            (581)             -           (581)
                                          -----------      ----------      ---------      ---------

BALANCE, DECEMBER 31, 1998                    13,247          14,420        (10,620)        17,047

Net loss for the period                            -               -         (8,488)        (8,488)
                                          -----------      ----------      ---------      ---------
BALANCE, DECEMBER 31, 1999                    13,247          14,420        (19,108)         8,559

Net loss for the period                            -               -         (2,383)        (2,383)
                                          -----------      ----------      ---------      ---------
BALANCE, MARCH 31, 2000                      $13,247         $14,420       $(21,491)      $  6,176
                                          ===========      ==========      =========      =========
</TABLE>


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


                                       3
<PAGE>

                        ALADDIN GAMING ENTERPRISES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                            STATEMENTS OF CASH FLOWS
      FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 AND FOR THE PERIOD
            FROM INCEPTION (DECEMBER 3, 1997) THROUGH MARCH 31, 2000
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                    For the period
                                                                                                   December 3, 1997
                                                   For the three            For the three             (inception)
                                                    months ended             months ended               through
                                                   March 31, 2000           March 31, 1999          March 31, 2000
                                                    (unaudited)              (unaudited)              (unaudited)
                                                   --------------           --------------         ----------------
<S>                                                <C>                      <C>                    <C>
Cash flows used for investing activities:
Investment in unconsolidated affiliate                         -                        -                  (15,000)

Cash flows from financing activities:
Proceeds from the issuance of stock                            -                        -                        1
Proceeds from the issuance of warrants                         -                        -                   15,000
                                                   --------------           --------------         ----------------

Increase in cash and cash equivalents                          -                        -                        1

Cash and cash equivalents at beginning of
period                                                         1                        1                        -
                                                   --------------           --------------         ----------------
Cash and cash equivalents at end of period                    $1                  $     1                 $      1
                                                   ==============           ==============         ================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Non-cash investing and financing activities:
Equity contributions - non-cash                                -                        -                 $ 13,247
</TABLE>


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


                                       4
<PAGE>

                        ALADDIN GAMING ENTERPRISES, INC.
                         (A DEVELOPMENT STAGE COMPANY)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000

1.   ORGANIZATION AND BUSINESS

     Aladdin Gaming Enterprises, Inc., a Nevada corporation ("Enterprises"),
was formed on December 3, 1997. Enterprises owns a 25% interest in Aladdin
Gaming Holdings, LLC ("Gaming Holdings"). Enterprises is wholly owned by
Sommer Enterprises, LLC, a Nevada limited liability company ("Sommer
Enterprises"). Aladdin Holdings, LLC, a Delaware limited liability company
("Holdings"), holds a majority interest in Sommer Enterprises. The members of
Holdings are the Trust Under Article Sixth u/w/o Sigmund Sommer ("Sommer
Trust") which holds a 95% interest in Holdings, and GW Vegas, LLC, a Nevada
limited liability company ("GW"), a wholly owned subsidiary of Trust Company
of the West ("TCW"), which holds a 5% interest in Holdings.

     Enterprises' interest in Gaming Holdings has been accounted for under
the equity method.

     Enterprises has no other business or activities other than its
investment in Gaming Holdings, which is a development stage company. Gaming
Holdings is a holding company, the material assets of which are 100% of the
outstanding common membership interests and 100% of the outstanding Series A
preferred interests of Aladdin Gaming, LLC, ("Gaming"). Gaming is developing,
constructing and will operate a new hotel and casino, the Aladdin Resort and
Casino as the centerpiece of an approximately 35-acre resort, casino and
entertainment complex in Las Vegas, Nevada. The resort will be located at the
center of Las Vegas Boulevard. Gaming Holdings, through its subsidiaries,
also owns 100% of Aladdin Music, LLC ("Aladdin Music"). Aladdin Music plans
to construct a second hotel and casino with a music and entertainment theme
("Aladdin Music Project") on the southeast corner of the 35-acre parcel.
Aladdin Music is currently seeking a joint venture partner and financing for
the Aladdin Music Project.

     This information should be read in conjunction with the financial
statements set forth in Enterprises' Annual Report on Form 10-K for the year
ended December 31, 1999.

     Accounting policies utilized in the preparation of the financial
information herein presented are the same as set forth in Enterprises' annual
financial statements except as modified for interim accounting policies. The
interim consolidated financial information is unaudited. In the opinion of
management, all adjustments, consisting only of normal recurring adjustments
necessary for a fair presentation of the results for the interim periods have
been included. Interim results of operations are not necessarily indicative
of the results of operations for the full year.

     Certain prior period amounts have been reclassified to conform with the
current period's presentation.

2.   INCOME TAXES

     Enterprises accounts for income taxes using the liability method as set
forth in the Statement of Financial Accounting Standards No. 109, ACCOUNTING
FOR INCOME TAXES. Under the liability method, deferred taxes are provided
based on the temporary differences between the financial reporting basis and
the tax basis of Enterprises' assets and liabilities.


                                      5
<PAGE>


     There was no income tax expense or benefit recorded for the period from
inception (December 3, 1997) through September 30, 1999 as Enterprises is a
development stage company and the realization of any deferred tax asset is
uncertain.

3.   IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

     In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities." SFAS No. 133 requires that
entities record all derivatives as assets or liabilities measured at fair
value, with the change in fair value recognized in earnings or in other
comprehensive income, depending on the use of the derivative and whether it
qualifies for hedge accounting. SFAS 133 amends or supercedes several current
accounting statements. In July, 1999, the FASB issued SFAS No. 137 which
delays the effective date of SFAS No. 133 from fiscal year 2000 to fiscal
year 2001. Enterprises is in the process of analyzing SFAS No. 133 and the
impact on its consolidated financial position and results of operations.


                                      6
<PAGE>


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

     The following discussion should be read in conjunction with, and is
qualified in its entirety by, the various other reports which have been
previously filed with the United States Securities and Exchange Commission
("SEC"), which may be inspected, without charge, at the Public Reference
Section of the SEC located at 450 Fifth Street, N.W., Washington, D.C. 20549
or the SEC internet site address: http://www.sec.gov.

DEVELOPMENT ACTIVITIES

     Aladdin Gaming Enterprises, Inc., a Nevada corporation ("Enterprises"),
was formed on December 3, 1997. Enterprises owns a 25% interest in Aladdin
Gaming Holdings, LLC ("Gaming Holdings"). Enterprise is wholly owned by
Sommer Enterprises, LLC, a Nevada limited liability company ("Sommer
Enterprises"). Aladdin Holdings, LLC, a Delaware limited liability company
("Holdings") holds a majority interest in Sommer Enterprises. The members of
Holdings are the Trust Under Article Sixth u/w/o Sigmund Sommer ("Sommer
Trust") which holds a 95% interest in Holdings, and GW Vegas, LLC, a Nevada
limited liability company ("GW"), a wholly-owned subsidiary of Trust Company
of the West ("TCW"), which holds a 5% interest in Holdings.

     Enterprises has no business or activities other than its investment in
Gaming Holdings, which is a development stage company. Gaming Holdings is a
holding company, the material assets of which are 100% of the outstanding
common membership interests and 100% of the outstanding Series A preferred
membership interests of Aladdin Gaming, LLC ("Gaming"). Aladdin Capital Corp.
("Capital") is a wholly-owned subsidiary of Gaming Holdings and was
incorporated solely for the purpose of serving as a co-issuer of Gaming
Holdings 13-1/2% Senior Discount Notes ("Notes"). Capital does not have any
material operations or assets and does not have any revenues. Gaming
Holdings, through its subsidiaries, also owns 100% of Aladdin Music, LLC
("Aladdin Music").

     The operations of Gaming Holdings and its subsidiaries have been
primarily limited to the design, development, financing and construction of a
new Aladdin Resort and Casino ("Aladdin"). The Aladdin will be the
centerpiece of an approximately 35-acre world-class resort, casino and
entertainment complex ("Complex") located on the site of the former Aladdin
hotel and casino in Las Vegas, Nevada, a premier location on Las Vegas
Boulevard. The Aladdin has been designed to include a luxury themed hotel of
approximately 2,567 rooms ("Hotel"), an approximately 116,000 square foot
casino ("Casino") an approximately 1,200 seat production showroom and six
restaurants. The Casino's main gaming area will contain approximately 2,800
slot machines, 87 table games, keno and a race and sports book facility.
Included on a separate level of the Casino will be a 15,000 square foot
luxurious gaming section ("The London Club at Aladdin") that is expected to
contain an additional 20 to 30 high denomination table games and
approximately 100 high denomination slot machines. The Complex, which has
been designed to promote casino traffic and to provide customers with a wide
variety of entertainment alternatives, will comprise: (i) the Aladdin; (ii)
the themed entertainment shopping mall with approximately 496,000 square feet
of retail space ("Desert Passage"); (iii) a planned second hotel and casino
with a music and entertainment theme ("Aladdin Music Project"); (iv) the
newly renovated 7,000-seat Theater of the Performing Arts ("Theater"); and
(v) the approximately 4,800-space car parking facility ("Carpark" and,
together with the Desert Passage, hereinafter, "Mall Project"). The Mall
Project is separately owned in part by an affiliate of Gaming Holdings and
Aladdin Music is currently seeking a joint venture partner and financing for
the Aladdin Music Project. Gaming Holdings currently believes that the
completion and opening of the Aladdin will occur during August 2000.


                                      7
<PAGE>

RESULTS OF OPERATIONS

     Enterprises has no business or activities or material assets other than
its investment in Gaming Holdings, which is a development stage company and
has no significant operations to date.

     Gaming Holdings has capitalized all qualifying construction costs.
Accordingly, Gaming Holdings does not have any historical operating income.
The capitalized costs consist primarily of land contributed by certain
members of Gaming Holdings, design fees, financing and commitment fees,
construction costs and interest on qualifying assets. Capitalized costs
include approximately $2.2 million related to Aladdin Music for necessary
predevelopment costs and expenses of the Aladdin Music Project. Gaming
Holdings' operating expenses primarily have consisted of interest,
amortization costs, expenses related to the Notes and pre-opening costs.

     Gaming Holdings anticipates that its results of operations from
inception to the opening of the Aladdin will be adversely affected by the
expensing of pre-opening costs and interest not qualifying for capitalization
and should not be indicative of future operations. Accordingly, historical
results will not be indicative of future operating results. Future operating
results of Gaming Holdings are subject to significant business, economic,
regulatory and competitive uncertainties and contingencies, many of which are
beyond Gaming Holdings' control. While Gaming Holdings believes that the
Aladdin will be able to attract a sufficient number of patrons and achieve
the level of activity necessary to permit Gaming Holdings to meet its debt
payment obligations, including the Notes and other indebtedness, and its
other obligations, there can be no assurance with respect thereto.

     Because Enterprises' only material asset is its 25% interest in Gaming
Holdings, Enterprises records 25% of Gaming Holdings' losses and preferred
dividends in arrears as equity in loss of unconsolidated affiliate.

     Enterprises recorded a net loss of approximately $2.4 million for the
three months ended March 31, 2000, as compared to approximately $2.0 million
for the three months ended March 31, 1999. Enterprises' cumulative loss for
the period of inception (December 3, 1997) to March 31, 2000 was
approximately $21.5 million. Gaming Holdings' losses were due to the
pre-opening costs, interest expense, amortization costs and expenses related
to the Notes.

MATERIAL CHANGES IN FINANCIAL CONDITION

     Through March 31, 2000, approximately $468.0 million had been expended
primarily on the development of the Aladdin, of which approximately $74.5
million had been expended on repayment of debt associated with the land
contribution to Gaming Holdings, approximately $351.0 million in
construction, furniture, fixtures and equipment, and capitalized interest,
approximately $39.5 million in debt issuance and member equity costs, and
approximately $3.0 million in pre-opening costs, net interest expense, and
other current assets.

LIQUIDITY AND CAPITAL RESOURCES

     On February 26, 1998, Gaming Holdings and Capital issued $221.5 million
aggregate principal amount of their 13-1/2% Senior Discount Notes due 2010
("Notes"). The proceeds to Gaming Holdings from the Notes were approximately
$115.0 million and all the proceeds have been utilized by Gaming Holdings for
the development and construction of the Aladdin. For further details on the
Notes, including the


                                      8
<PAGE>


covenants, restrictions and limitations on Enterprises pursuant to the Notes
Indenture, see Exhibit 10.1 to Enterprises' Form 10-K for the year ended
December 31, 1999.

     Gaming has a credit facility ("Bank Credit Facility" or "Credit
Agreement") with various financial institutions and The Bank of Nova Scotia
as the administrative agent for the lenders (collectively, "Lenders"). The
Credit Agreement consists of three separate term loans. The Term A Loan
comprises a term loan of $129.7 million and matures five and one-half years
after the initial borrowing date. The Term B Loan comprises a term loan of
$114 million and matures eight and one-half years after the initial borrowing
date. The Term C Loan comprises a term loan of $160 million and matures ten
years after the initial borrowing date. As of March 31, 2000, approximately
$42.3 million of the Term C Loan proceeds, plus accrued interest, is
available. As of March 31, 2000, Gaming had approximately $20.5 million of
interest income that has been earned as the Term B and Term C Loan proceeds
that is also available. For further details on the Bank Credit Facility,
including the covenants, restrictions and limitations on Gaming pursuant to
the Bank Credit Facility, see Exhibit 10.12 to Enterprises' Form 10-K for the
year ended December 31, 1999.

     Gaming has operating lease financing of up to $60 million and a term
loan facility of $20 million to obtain gaming equipment and other specified
equipment (collectively, "FF&E Financing"). For further details on the
operating lease financing and term loan facility, including the covenants,
restrictions and limitations on Gaming pursuant to the FF&E Financing, see
Exhibit 10.40 to Enterprises' Form 10-K for the year ended December 31, 1998.

     Upon the later of (a) the transfer of the real property under the Mall
Project by Gaming to Aladdin Bazaar, LLC ("Aladdin Bazaar") or (b) the
commencement of Aladdin's operations, Aladdin Bazaar will execute a
promissory note of approximately $16.7 million to Gaming. Principal and
interest on the note is payable by Aladdin Bazaar to Gaming in the amount of
$2 million per year. The required payments are subordinated to various
restrictions under the Aladdin Bazaar operating agreement. Due to the
restrictions upon the payments, there can be no assurances that Gaming will
receive any payments under this note.

     London Clubs, the Sommer Trust, and Aladdin Bazaar Holdings, LLC
("Bazaar Holdings"), which is owned 99% by the Sommer Trust, have entered
into a completion guaranty ("Bank Completion Guaranty") for the benefit of
the Lenders under the Bank Credit Facility, under which they have agreed to
guarantee, among other things, the completion of the Aladdin. The Bank
Completion Guaranty is not subject to any maximum dollar limitations. From
January 1, 2000 to March 31, 2000, there has been a total of approximately
$20.6 million in payments pursuant to the Bank Completion Guaranty, which has
been funded by London Clubs. Gaming Holdings issued for these Bank Completion
Guaranty payments (i) Series A Preferred Shares in exchange for the
contribution of such payments and (ii) Series D Preferred Shares representing
a profits only interest in Gaming Holdings. The holders of the Notes are not
a party to the Bank Completion Guaranty, however, London Clubs, the Sommer
Trust and Bazaar Holdings have entered into a limited completion guaranty for
the benefit of the Noteholders ("Noteholder Completion Guaranty") under which
they guarantee completion of the Aladdin, subject to certain important
exceptions, limitations and qualifications. The Noteholder Completion
Guaranty contains certain intercreditor provisions which significantly limit
the rights of the Trustee under the Noteholder Completion Guaranty.

     In connection with the development of the Mall Project, Aladdin Bazaar
agreed to reimburse Gaming approximately $14.2 million for the construction
of certain areas shared by the Aladdin and the Mall Project and the facade to
the Aladdin and, as of March 31, 2000, Aladdin Bazaar has paid the Company
approximately $12.0 million of this amount. Additionally, Aladdin Bazaar is
obligated to spend no more than $36 million for the Carpark. Therefore, any
cost overruns associated with these items will be


                                      9
<PAGE>


borne by Gaming. In addition, Gaming is obligated to pay to Aladdin Bazaar:
(i) a $3.2 million fee per year for a term of 99 years, which is adjusted
every fifth year pursuant to a consumer price index-based formula, for usage
of the Carpark; and (ii) Gaming's proportionate share of the operating costs
associated with the Carpark and other common areas.

     Gaming Holdings believes that the funds provided by the Notes, Bank
Credit Facility, FF&E Financing, London Clubs' equity contribution and
contributions pursuant to the Bank Completion Guaranty (collectively,
"Funding Transactions") will be sufficient to develop, complete and commence
operation of the Aladdin. However, there can be no assurance that the Funding
Transactions will be sufficient for the development, construction and
commencement of the Aladdin.

     Following the commencement of operations of the Aladdin, Gaming Holdings
expects to fund its operating, debt service and capital needs, as currently
contemplated, with $15 million of working capital from the Funding
Transactions and operating cash flows. In addition, Gaming Holdings is
seeking a $10 million working capital facility; however, there can be no
assurance such facility will be available to Gaming Holdings, or that, if
available, the facility will be on terms favorable to Gaming Holdings.

     Although no additional financing is contemplated, Gaming Holdings will
seek, if necessary and to the extent permitted under the Notes Indenture and
the terms of the Bank Credit Facility and the FF&E Financing, additional
financing through additional bank borrowings or debt or equity financings.
There can be no assurance that additional financing, if needed, will be
available to Gaming Holdings, or that, if available, the financing will be on
terms favorable to Gaming Holdings. There can also be no assurance that
estimates by Gaming Holdings of its reasonably anticipated liquidity needs
are accurate or that new business developments or other unforeseen events
will not occur, resulting in the need to raise additional funds.

CERTAIN FORWARD LOOKING STATEMENTS

     Certain information included in this Form 10-Q and other materials filed
or to be filed by Enterprises with the United States Securities and Exchange
Commission (as well as information included in oral statements or other
written statements made, or to be made, by Enterprises) contain statements
that are forward-looking 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. Such statements include, without limitation, those relating
to plans for future operations, current construction and development
activities (including completion dates, budgets and cost estimates), other
business development activities, capital spending, financing sources, the
effect of regulation (including gaming and tax regulations) and competition.
Such forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future and,
accordingly, such results may differ from those expressed in any
forward-looking statements made by, or on behalf of, Enterprises. These risks
and uncertainties include, but are not limited to, those relating to the
current development and construction activities and costs and timing thereof,
the sources and extent of financing for the project, dependence on existing
management, leverage and debt service (including sensitivity to fluctuations
in interest rates), domestic or international economic conditions (including
sensitivity to fluctuations in foreign currencies), changes in federal or
state tax laws or the administration of such laws, changes in gaming laws or
regulations (including the legalization of gaming in certain jurisdictions)
and application for licenses and approvals under applicable jurisdictional
laws and regulations (including gaming laws and regulations).


                                      10
<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Effective June 30, 1999, Gaming restructured its interest rate swap
arrangements in an effort to reduce future expenditures for interest. Gaming
has entered into these agreements to manage interest expense, which is
subject to fluctuations due to the variable nature of the London Interbank
Offered Rate ("LIBOR"). In exchange for entering into the transaction, Gaming
received $500,000 from the counterparty in July, 1999.

     Beginning June 30, 1999, Gaming has the following interest rate swaps,
interest rate ceilings and floor caps, and related notional amounts in
effect: (i) an interest rate swap with an original notional amount of $114
million increasing to a maximum of $222.5 million whereby interest is fixed
at 5.50% through March 31, 2000; (ii) after March 31, 2000, an interest rate
collar with a notional amount of $250 million, a maximum and minimum interest
rate of 7.5% and 5.15%, respectively, will go into effect and mature on
September 30, 2006; and (iii) an interest rate collar with a notional amount
of $160 million, a maximum rate of 8.00%, a minimum rate of 5.15% and a
maturity date of March 31, 2003. All rates noted above are LIBOR equivalents
only and do not include the impact of the basis point additions to LIBOR that
are used in calculating interest expense on Gaming's term loans. The LIBOR
applicable to these agreements is adjusted every three months and on March
31, 2000 was set at 6.18%. The fair market value of Gaming's interest rate
swaps, interest rate ceilings and floor caps as provided by the counterparty,
is a net receivable of approximately $4.1 million at March 31, 2000.

     The notional amounts do not represent amounts exchanged by the parties,
and thus are not a measure of exposure of Gaming. The amounts exchanged are
normally based on the notional amounts and other terms of the swaps. The
variable rates are subject to change over time as LIBOR fluctuates.

     Neither Gaming nor the counterparty, which is a prominent financial
institution, is required to collateralize their respective obligations under
these swaps. Gaming is exposed to loss if the counterparty defaults. However,
the Company considers the risk of non-performance to be minimal as the
counterparty is a member of the Bank Credit Facility.


PART II  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits

              27.01  Financial Data Schedule

         (b)  Reports on Form 8-K

         On February 1, 2000, Enterprises filed a Form 8-K, dated January 28,
2000 with the United States Securities and Exchange Commission. The Form 8-K
reported the extension of the Outside Completion Deadline for the Aladdin.


                                      11
<PAGE>


                                   SIGNATURES

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


                                      ALADDIN GAMING ENTERPRISES, INC.


May 15, 2000                          By: /s/ Ronald Dictrow
                                          ----------------------------------
                                          Ronald Dictrow, Secretary


May 15, 2000                          By: /s/ Thomas A. Lettero
                                          ----------------------------------
                                          Thomas A. Lettero, Treasurer



                                      12
<PAGE>


                                  EXHIBIT INDEX

<TABLE>
<CAPTION>

EXHIBIT NO.    DESCRIPTION                                        PAGE NO.
-----------    -----------                                        --------
<S>            <C>
27.01          Financial Data Schedule

</TABLE>


                                      13