<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                           --------------------------

(Mark One)                         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 March 31, 2001

   [_]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the transition period from     to

                           Commission File No.: 1-9029

                       TRUMP'S CASTLE HOTEL & CASINO, INC.
                       -----------------------------------
             (Exact Name of Registrant as Specified in its Charter)


                New Jersey                                       11-2735914
                ----------                                       ----------
     (State or Other Jurisdiction of                          (I.R.S. Employer
      Incorporation or Organization)                         Identification No.)

                      Huron Avenue and Brigantine Boulevard

                         Atlantic City, New Jersey 08401

                                 (609) 441-8406

          (Address, Including Zip Code and Telephone Number, Including

             Area Code, of Registrant's Principal Executive Offices)

                          TRUMP'S CASTLE FUNDING, INC.
                          ----------------------------
             (Exact Name of Registrant as Specified in its Charter)

               New Jersey                                     11-2739203
               ----------                                     ----------
     (State or Other Jurisdiction of                       (I.R.S. Employer
     Incorporation or Organization)                      Identification No.)

                      Huron Avenue and Brigantine Boulevard

                         Atlantic City, New Jersey 08401

                                 (609) 441-8406

          (Address, Including Zip Code and Telephone Number, Including

             Area Code, of Registrant's Principal Executive Offices)

                         TRUMP'S CASTLE ASSOCIATES, L.P.
                         -------------------------------

             (Exact Name of Registrant as Specified in its Charter)

                New Jersey                                      22-2608426
                ----------                                      ----------
      (State or other jurisdiction of                        (I.R.S. Employer
      Incorporation or organization)                       Identification No.)

                      Huron Avenue and Brigantine Boulevard

                         Atlantic City, New Jersey 08401

                                 (609) 441-8406

          (Address, Including Zip Code and Telephone Number, Including

             Area Code, of Registrant's Principal Executive Offices)


           Securities registered pursuant to Section 12(b) of the Act:


       Title of Each Class             Name of Each Exchange on Which Registered
       -------------------             -----------------------------------------
  11-3/4% Mortgage Notes due 2003             American Stock Exchange, Inc
   Increasing Rate Subordinated               American Stock Exchange, Inc.
    Pay-In-Kind Notes due 2005

               ---------------------------------------------------

        Securities registered pursuant to Section 12(g) of the Act: None

               ---------------------------------------------------


     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
Registrant was required to file such reports), and (2) have been subject to such
filing requirements for the past 90 days. Yes |X| No. |_|

     As of May 15, 2001, there were 100 shares of Trump's Castle Hotel & Casino,
Inc.'s Common Stock, no par value, outstanding. Trump's Castle Hotel & Casino,
Inc. meets the conditions set forth in General Instructions H(1)(a) and (b) of
Form 10-Q and is therefore filing this form with the reduced disclosure format.

     As of May 15, 2001, there were 200 shares of Trump's Castle Funding, Inc.'s
Common Stock, par value $.01 per share, outstanding. Trump's Castle Funding,
Inc. meets the conditions set forth in General Instructions H(1)(a) and (b) of
Form 10-Q and is therefore filing this form with the reduced disclosure format.

<PAGE>


                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY

                               INDEX TO FORM 10-Q

<TABLE>
<CAPTION>
                                                                                                        Page No.
                                                                                                        --------
<S>                                                                                                     <C>
PART I - FINANCIAL INFORMATION

     ITEM 1 - Financial Statements

       Condensed Consolidated Balance Sheets as of December 31, 2000 and March 31, 2001 (unaudited)     1

       Condensed Consolidated Statements of Operations for the three months ended March 31, 2000 and
             2001 (unaudited) ......................................................................    2

       Condensed Consolidated Statement of Partners' Capital for the three months ended March 31,
             2001 (unaudited) ......................................................................    3

       Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2000
             and 2001 (unaudited) ..................................................................    4

       Notes to Condensed Consolidated Financial Statements (unaudited) ............................    5

     ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations     8

     ITEM 3 - Quantitative and Qualitative Disclosures About Market Risk ...........................   11


PART II - OTHER INFORMATION

     ITEM 1 - Legal Proceedings ....................................................................   12

     ITEM 2 - Changes in Securities and Use of Proceeds ............................................   12

     ITEM 3 - Defaults Upon Senior Securities ......................................................   12

     ITEM 4 - Submission of Matters to a Vote of Security Holders ..................................   12

     ITEM 5 - Other Information ....................................................................   12

     ITEM 6 - Exhibits and Reports on Form 8-K .....................................................   12

     SIGNATURES

       Trump's Castle Hotel & Casino, Inc. .........................................................   13
       Trump's Castle Funding, Inc. ................................................................   13
       Trump's Castle Associates, L.P. .............................................................   13
</TABLE>

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)


<TABLE>
<CAPTION>
                                                              December 31,   March 31,
                                                                 2000           2001
                                                             -----------    -----------
                                                                           (unaudited)
<S>                                                            <C>           <C>
                                     ASSETS
                                     ------
CURRENT ASSETS
   Cash and cash equivalents ...............................   $ 21,236      $ 26,686
   Receivables, net ........................................     15,756        14,988
   Inventories .............................................      3,125         3,133
   Prepaid expenses and other current assets ...............      2,011         1,467
                                                               --------      --------
         Total current assets ..............................     42,128        46,274
PROPERTY AND EQUIPMENT, NET ................................    471,986       469,396
OTHER ASSETS ...............................................     11,179        10,964
                                                               --------      --------
         Total assets ......................................   $525,293      $526,634
                                                               ========      ========


                        LIABILITIES AND PARTNERS' CAPITAL
                        ---------------------------------

CURRENT LIABILITIES
   Current maturities-long term debt .......................   $  1,136      $  1,048
   Accounts payable and accrued expenses ...................     26,623        27,550
   Due to affiliates .......................................     17,042        13,646
   Accrued interest payable ................................      4,701        13,531
                                                               --------      --------
         Total current liabilities .........................     49,502        55,775
LONG TERM DEBT, LESS CURRENT MATURITIES ....................    409,511       410,872
OTHER LONG TERM LIABILITIES ................................      3,565         7,866
                                                               --------      --------
         Total liabilities .................................    462,578       474,513
COMMITMENTS AND CONTINGENCIES
PARTNERS' CAPITAL ..........................................     62,715        52,121
                                                               --------      --------
         Total liabilities and partners' capital ...........   $525,293      $526,634
                                                               ========      ========
</TABLE>


The accompanying notes are an integral part of these condensed consolidated
balance sheets.

                                        1

<PAGE>

                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
                                 (in thousands)

                                            For the Three Months Ended March 31,

                                                  2000             2001
                                                --------         --------
REVENUES

   Gaming ..............................        $ 59,325         $ 62,093
   Rooms ...............................           3,547            3,963
   Food and beverage ...................           7,193            7,057
   Other ...............................           1,724            1,610
                                                --------         --------
      Gross revenues ...................          71,789           74,723
   Less-promotional allowances .........           8,030            8,967
                                                --------         --------
      Net revenues .....................          63,759           65,756
                                                --------         --------

COSTS AND EXPENSES
   Gaming ..............................          35,488           38,531
   Rooms ...............................           1,018              690
   Food and beverage ...................           2,181            1,892
   General and administrative ..........          16,352           16,546
   Depreciation and amortization .......           4,341            4,299
                                                --------         --------
                                                  59,380           61,958
                                                --------         --------
      Income from operations ...........           4,379            3,798
INTEREST INCOME ........................             250              233
INTEREST EXPENSE .......................         (13,997)         (14,625)
                                                --------         --------
      Net loss .........................        $ (9,368)        $(10,594)
                                                ========         ========


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

                                       2

<PAGE>



                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
              CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
                    FOR THE THREE MONTHS ENDED MARCH 31, 2001
                                   (unaudited)
                                 (in thousands)


                                        Contributed    Accumulated
                                          Capital        Deficit        Total
                                          -------        -------        -----
Balance at December 31, 2000 .........  $    175,395   $ (112,680)   $   62,715
Net loss .............................             -      (10,594)      (10,594)
                                        ------------   ----------    ----------
Balance at March 31, 2001 ............  $    175,395   $ (123,274)   $   52,121
                                        ============   ==========    ==========



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


                                       3

<PAGE>

                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (in thousands)




<TABLE>
<CAPTION>
                                                                 For the Three Months Ended March 31,

                                                                        2000           2001
                                                                     --------         --------
<S>                                                                  <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss ......................................................   $ (9,368)        $(10,594)
   Adjustments to reconcile net loss to net cash flows provided by
          operating activities -
          Depreciation and amortization ..........................      4,341            4,299
          Accretion of bond discount .............................      1,207            1,409
          Provision for losses on receivables ....................        262              299
          Valuation allowance - CRDA investments .................        281              551
          Decrease in receivables ................................      2,067              511
          Decrease (increase) in inventories .....................         28               (8)
          Decrease in prepaid expenses and other current assets ..        281              544
          Decrease (increase) in other assets ....................        388              (66)
          Increase in current liabilities ........................      7,112            9,757
          Decrease in amounts due to affiliates ..................       (294)          (3,483)
          Increase in other liabilities ..........................      3,610            4,301
                                                                     --------         --------
               Net cash flows provided by operating activities ...      9,915            7,520
                                                                     --------         --------

CASH FLOWS FROM INVESTING ACTIVITIES
          Purchases of property and equipment ....................       (957)          (1,140)
          Purchase of CRDA investments ...........................       (752)            (794)
                                                                     --------         --------
               Net cash flows used in investing activities .......     (1,709)          (1,934)
                                                                     --------         --------

CASH FLOWS FROM FINANCING ACTIVITIES
          Repayment of other borrowings ..........................       (380)            (136)
                                                                     --------         --------
               Net cash flows used in financing activities .......       (380)            (136)
                                                                     --------         --------

               Net increase in cash and cash equivalents .........      7,826            5,450
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .................     21,413           21,236
                                                                     --------         --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD .......................   $ 29,239         $ 26,686
                                                                     ========         ========

SUPPLEMENTAL INFORMATION
               Cash paid for interest ............................   $    270         $    178
                                                                     ========         ========
</TABLE>


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

                                       4

<PAGE>

                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1) Organization and Operations

     The accompanying condensed consolidated financial statements include those
of Trump's Castle Associates, L.P., a New Jersey limited partnership (the
"Partnership"), and its wholly-owned subsidiary, Trump's Castle Funding, Inc., a
New Jersey corporation ("Funding"). The Partnership is 99% owned by Trump Hotels
& Casino Resorts Holdings, L.P., a Delaware limited partnership ("THCR
Holdings"), and 1% by Trump's Castle Hotel & Casino, Inc., a New Jersey
corporation ("TCHI"). TCHI is wholly owned by THCR Holdings, and THCR Holdings
is currently a 63.4% owned subsidiary of Trump Hotels & Casino Resorts, Inc., a
Delaware corporation ("THCR"). THCR and THCR Holdings are reporting companies
under the Securities Exchange Act of 1934, as amended, and have filed all the
material required to be filed pursuant to Section 13, 14 or 15(d) thereof, as
applicable.

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

     The Partnership operates the Trump Marina Hotel Casino ("Trump Marina"), a
casino hotel located in the marina district of Atlantic City, New Jersey. The
majority of Trump Marina's revenues are derived from its gaming operations.

     Since Funding has no business operations, its ability to repay the
principal and interest on the $62,000,000 10 1/4% Senior Secured Notes due 2003
(the "Senior Notes"), the 11 3/4% Mortgage Notes due 2003 (the "Mortgage Notes")
and its Increasing Rate Subordinated Pay-in-Kind Notes due 2005 (the "PIK
Notes") is completely dependent upon the operations of the Partnership.

     Since TCHI has no business operations, its ability to repay the principal
and interest on the $5,000,000 10 1/4% Senior Secured Notes due 2003 (the
"Working Capital Loan") is completely dependent upon the operations of the
Partnership.

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

     The accompanying condensed consolidated financial statements have been
prepared by the Partnership pursuant to the rules and regulations of the
Securities and Exchange Commission (the "SEC"). Accordingly, certain information
and note disclosures normally included in the financial statements prepared in
conformity with generally accepted accounting principles have been 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, 2000
filed with the SEC by the Partnership, Funding and TCHI.

     The casino industry in Atlantic City is seasonal in nature; accordingly,
the results of operations for the three month period ending March 31, 2001 are
not necessarily indicative of the operating results for a full year.


                                       5

<PAGE>


                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
                                   (unaudited)

(2) Financial Information of Funding

     Financial information relating to Funding is as follows:





                                              December 31,           March 31,
                                                  2000                  2001
                                              ------------          ------------
Total Assets (including Mortgage
Notes Receivable of $242,141,000,
net of unamortized discount of
$18,383,000 at December 31, 2000
and $17,144,000 at March 31, 2001,
PIK Notes Receivable of
$120,979,000, net of unamortized
discount of $5,726,000 at December
31, 2000 and $5,556,000 at March 31,
2001,Senior Notes Receivable of
$62,000,000 at December 31, 2000
and March 31, 2001) ................          $401,011,000          $402,420,000
                                              ============          ============



Total Liabilities and Capital
(including Mortgage Notes Payable of
$242,141,000, net of unamortized
discount of $18,383,000 at December
31, 2000 and $17,144,000 at March
31, 2001, PIK Notes Payable of
$120,979,000, net of unamortized
discount of $5,726,000 at December
31, 2000 and $5,556,000 at March 31,
2001, Senior Notes Payable of
$62,000,000 at December 31, 2000 and
March 31, 2001) ....................          $401,011,000          $402,420,000
                                              ============          ============




                                                 Three Months Ended March 31,
                                                  2000                   2001
                                              ------------          ------------
Interest Income ....................          $ 13,531,000          $ 14,254,000
Interest Expense ...................            13,531,000            14,254,000
                                              ------------          ------------
Net Income .........................          $       --            $       --
                                              ============          ============


                                       6


<PAGE>


                 TRUMP'S CASTLE ASSOCIATES, L.P. AND SUBSIDIARY
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
                                   (unaudited)

(3) Financial Information of TCHI

     Financial information relating to TCHI is as follows:

<TABLE>
<CAPTION>
                                                                      December 31,  March 31,
                                                                           2000        2001
                                                                      -----------   ----------
<S>                                                                    <C>          <C>
Total Assets (including Working Capital Loan Receivable of
      $5,000,000 at December 31, 2000 and  March 31, 2001) .........   $5,000,000   $5,000,000
                                                                       ==========   ==========

Total Liabilities and Capital (including Working Capital Loan
      Payable of $5,000,000 at December 31, 2000 and March 31, 2001)   $5,000,000   $5,000,000
                                                                       ==========   ==========
</TABLE>


<TABLE>
<CAPTION>

                                                                     Three Months Ended March 31,

                                                                         2000          2001
                                                                       --------      --------
<S>                                                                    <C>           <C>
Interest Income ...................................................    $128,000      $128,000
Interest Expense ..................................................     128,000       128,000
                                                                       --------      --------
Net Income ........................................................    $   --        $   --
                                                                       ========      ========
</TABLE>



(4) Recent Accounting Pronouncement

     In January 2001, the Emerging Issues Task Force ("EITF") reached a
consensus on certain issues within Issue No. 00-22, "Accounting for 'Points' and
Certain Other Time-Based or Volume-Based Sales Incentive Offers, and Offers for
Free Products or Services to Be Delivered in the Future" ("EITF 00-22").
Application of EITF 00-22 is required for interim and annual periods ending
after February 15, 2001. EITF 00-22 requires volume-based cash rebates to be
classified as a reduction of revenue. Accordingly, such rebates have been
classified as promotional allowances. The Partnership previously classified
these expenditures as a gaming expense. Prior period amounts have been
reclassified to conform with the current presentation.


                                        7

<PAGE>


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

Capital Resources and Liquidity

     Cash flow from operating activities is the Partnership's principal source
of liquidity. For the three months ended March 31, 2001, the Partnership's net
cash flow provided by operating activities was $7,520,000.

     In addition to funding operations, the Partnership's principal uses of cash
are capital expenditures and debt service.

     Capital expenditures for 2001 are anticipated to be approximately
$12,000,000 and will consist primarily of slot machine purchases, hotel room
renovations, and other ongoing property enhancements.

     The Partnership's debt consists primarily of (i) the Mortgage Notes, (ii)
the PIK Notes, (iii) the Senior Notes and (iv) the Working Capital Loan.

     The Mortgage Notes have an outstanding principal amount of approximately
$242,141,000, bear interest at the rate of 11 3/4% per annum, payable
semi-annually each May and November, and mature on November 15, 2003.

     The PIK Notes have an outstanding principal amount of approximately
$120,979,000 and mature on November 15, 2005. Interest is currently payable
semi-annually at the rate of 13 7/8%. On or prior to November 15, 2003, interest
on the PIK Notes may be paid in cash or through the issuance of additional PIK
Notes. The Partnership anticipates that interest due in 2001 of approximately
$17,368,000 will be paid through the issuance of additional PIK Notes.
Approximately 90% of the PIK Notes are currently owned by THCR Holdings.

     The 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 entire principal balance of the Senior Notes matures on April
30, 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 30, 2003. The Partnership has the authority to obtain a working
capital facility of up to $10,000,000 (of which approximately $5,000,000 is
outstanding), although there can be no assurance that such financing will be
available, or on terms acceptable to the Partnership.

     The ability of Funding, TCHI and the Partnership to pay their indebtedness
when due will depend on the Partnership either generating cash from operations
sufficient for such purposes or refinancing such indebtedness on or before the
date on which it becomes due. Cash flow from operations may not be sufficient to
repay a substantial portion of the principal amount of the debt at maturity. The
future operating performance of the Partnership and the ability to refinance
this debt will be subject to the then prevailing economic conditions, industry
conditions and numerous other financial, business and other factors, many of
which are beyond the control of Funding, TCHI or the Partnership. There can be
no assurance that the future operating performance of the Partnership will be
sufficient to meet these repayment obligations or that the general state of the
economy, the status of the capital markets or the receptiveness of the capital
markets to the gaming industry will be conducive to refinancing this debt or
other attempts to raise capital.


                                       8

<PAGE>


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

Results of Operations: Operating Revenues and Expenses

     The financial information presented below reflects the financial condition
and results of operations of the Partnership. Funding is a wholly-owned
subsidiary of the Partnership and conducts no business other than collecting
amounts due under certain intercompany notes from the Partnership for the
purpose of paying principal of, premium, if any, and interest on its
indebtedness, which Funding issued as a nominee for the Partnership.

Comparison of Results of Operations for the Three Month Periods Ended March 31,
2000 and 2001.

     Gaming revenues are the primary source of the Partnership's revenues and
primarily consist of table game and slot machine win. The following chart
details activity for the major components of gaming revenue:


                                                    Three Months Ended March 31,
                                                     2000                   2001
                                                     ----                   ----
                                                      (dollars in thousands)
Table Game Revenue ......................         $  13,562           $  14,965
Increase from Prior Period ..............                             $   1,403
Table Game Drop .........................         $  88,395           $  91,636
Increase from Prior Period ..............                             $   3,241
Table Game Win Percentage ...............              15.3%               16.3%
Increase from Prior Period ..............                              1.0 pts.
Number of Table Games ...................                76                  76

Slot Revenue ............................         $  45,633           $  47,001
Increase from Prior Period ..............                             $   1,368
Slot Handle .............................         $ 582,532           $ 612,863
Increase from Prior Period ..............                             $  30,331
Slot Win Percentage .....................               7.8%                7.7%
Decrease from Prior Period ..............                             (0.1) pts.
Number of Slot Machines .................             2,265               2,531
Increase from Prior Period ..............                                   266

Other Gaming Revenue ....................         $     130           $     127
Decrease from Prior Period ..............                                   ($3)

Total Gaming Revenues ...................         $  59,325           $  62,093
Increase from Prior Period ..............                             $   2,768


                                       9

<PAGE>

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

     Table game revenues increased by approximately $1,403,000, or 10.3%, to
$14,965,000 for the three months ended March 31, 2001 from $13,562,000 for the
three months ended March 31, 2000. This increase is the result of higher table
game drop than the previous year, coupled with an increased table game win
percentage. Table game revenues represent the amount retained by the Partnership
from amounts wagered at table games. The table game 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
game win percentages were 15.2% and 15.4% for the three months ended March 31,
2001 and 2000, respectively.

     Slot revenues increased by approximately $1,368,000, or 3.0%, to
$47,001,000 for the three months ended March 31, 2001 from $45,633,000 for the
three months ended March 31, 2000. This increase is due to a higher slot handle
as compared to the previous year, offset by a lower slot win percentage. The
increased slot handle is due primarily to sustained marketing programs and
events designed specifically for the slot customer.

     Gross revenues include the retail value of the complimentary food, beverage
and hotel services provided to patrons. The retail value of these promotional
allowances is deducted from gross revenues to arrive at net revenues. The costs
of providing such complimentaries have been classified as gaming costs and
expenses through interdepartmental allocations in the accompanying consolidated
statements of operations. The costs associated with providing cash nongaming
services are classified in food, beverage and rooms costs and expenses in the
accompanying consolidated statements of operations.

     Nongaming revenues, in the aggregate, increased by approximately $166,000,
or 1.3%, to $12,630,000 for the three months ended March 31, 2001 from
$12,464,000 for the three months ended March 31, 2000. This increase was due
primarily to incremental complimentary room revenues recorded in 2001.
Accordingly, promotional allowances increased by approximately $937,000, or
11.7%, to $8,967,000 for the three months ended March 31, 2001 from $8,030,000
for the three months ended March 31, 2000.

     Gaming costs and expenses increased approximately $3,043,000, or 8.6%, to
$38,531,000 for the three months ended March 31, 2001 from $35,488,000 for the
three months ended March 31, 2000. This was due primarily to the increased
spending in promotional and complimentary marketing programs, which was incurred
to stimulate gaming revenues.

     Room costs decreased by approximately $328,000, or 32.2%, to $690,000 for
the three months ended March 31, 2001 from $1,018,000 for the three months ended
March 31, 2000. This decrease is due primarily to associated costs incurred
related to a 20.4% decrease in cash rooms revenues generated in 2001 as compared
to 2000.

     Food and beverage costs decreased by approximately $289,000, or 13.3%, to
$1,892,000 for the three months ended March 31, 2001 from $2,181,000 for the
three months ended March 31, 2000. This decrease is due primarily to associated
costs incurred related to a 13.4% decrease in food and beverage cash revenues
generated in 2001 as compared to 2000.

     Interest expense increased approximately $628,000, or 4.5%, to $14,625,000
for the three months ended March 31, 2001 from $13,997,000 for the three months
ended March 31, 2000, primarily due to an increase in the outstanding principal
of the PIK Notes.


                                       10

<PAGE>


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

Seasonality

     The casino industry in Atlantic City is seasonal in nature; accordingly,
the results of operations for the three month period ending March 31, 2001 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. All statements, trend
analysis and other information contained in this Quarterly Report on Form 10-Q
relative to the Partnership's performance, trends in the Partnership's
operations or financial results, plans, expectations, estimates and beliefs, as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend" and other similar expressions, constitute
forward-looking statements under the Private Securities Litigation Reform Act of
1995. 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 the
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. 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 this 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

     Not applicable.


                                       11

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

     General. The Partnership, its partners, certain members of the former
Executive Committee of the Partnership, Funding, TCHI and certain of their
employees are involved in various legal proceedings. Such persons and entities
are vigorously defending the allegations against them and intend to contest
vigorously any future proceedings. The Partnership, Funding and TCHI have 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.

     Various other legal proceedings are now pending against the Partnership.
The Partnership considers all such proceedings to be ordinary ligation incident
to the character of its business. Management believes that the resolution of
these claims will not, individually or in the aggregate, have a material adverse
effect on the financial condition or results of operations of the Partnership.

     From time to time, the Partnership may be involved in routine
administrative proceedings involving alleged violations of certain provisions of
the New Jersey Casino Control Act. However, the Partnership believes that the
final outcome of these proceedings will not, either individually or in the
aggregate, have a material adverse effect on the Partnership or on its ability
to otherwise retain or renew any casino or other licenses required under the New
Jersey Casino Control Act for the operation of Trump Marina.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
         Not applicable.


ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
         Not applicable.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         Not applicable.

ITEM 5 - OTHER INFORMATION
         None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
         None.

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<PAGE>

                                   SIGNATURES

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



                                         TRUMP'S CASTLE HOTEL & CASINO, INC.
                                            (Registrant)

Date: May 15, 2001                        By: /s/ Francis X. McCarthy, Jr.
                                              ----------------------------
                                            Francis X. McCarthy, Jr.
                                            Executive Vice President of Finance
                                            and Chief Financial Officer
                                            (Duly Authorized Officer and
                                            Principal Financial Officer)




                                         TRUMP'S CASTLE FUNDING, INC.
                                            (Registrant)

Date: May 15, 2001                        By: /s/ Francis X. McCarthy, Jr.
                                              ----------------------------
                                            Francis X. McCarthy, Jr.
                                            Executive Vice President of Finance
                                            and Chief Financial Officer
                                            (Duly Authorized Officer and
                                            Principal Financial Officer)



                                         TRUMP'S CASTLE ASSOCIATES, L.P.
                                            (Registrant)

                                         By: Trump's Castle Hotel & Casino, Inc.
                                             its general partner

Date: May 15, 2001                        By: /s/ Francis X. McCarthy, Jr.
                                              ----------------------------
                                            Francis X. McCarthy, Jr.
                                            Executive Vice President of Finance
                                            and Chief Financial Officer
                                            (Duly Authorized Officer and
                                            Principal Financial Officer)



                                       13