U.S. SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

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

     For the quarterly period ended March 31, 2000

      [   ]     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. 0-23015

               RED HORSE ENTERTAINMENT CORPORATION
   (Exact name of small business issuer as specified in its charter)

            Nevada                          87-0450232
(State or other jurisdiction of  (IRS Employer Identification No.)
 incorporation or organization)

         11828 La Grange Avenue, Los Angeles, CA  90025
             (Address of principal executive offices)

                         (310) 473-0213
                   (Issuer's telephone number)

                         Not Applicable
(Former name, address and fiscal year, if changed since last report)

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

APPLICABLE  ONLY  TO ISSUERS INVOLVED IN BANKRUPTCY  PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports
required  to  be  filed by Sections 12,  13,  or  15(d)  of  the
Exchange Act subsequent to the distribution of securities  under
a plan confirmed by a court. Yes [  ]  No  [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS:
State  the number of shares outstanding of each of the  issuer's
classes  of  common equity, as of ___________, 2000:  __________
shares of common stock.

Transitional Small Business Format:  Yes [   ]  No [ X ]

<PAGE>

                           FORM 10-QSB
               RED HORSE ENTERTAINMENT CORPORATION

                              INDEX
                                                       Page
PART I.   Financial Information                           3

          Financial Statements                            4

          Management's Discussion And Analysis of        12
          Financial Condition or Plan of Operation

PART II.  Other Information                              13

          Signatures                                     13

                                2
<PAGE>

                             PART I.
                  Item 1. Financial Information

In   the   opinion  of  management,  the  accompanying  unaudited
financial  statements included in this Form  10-QSB  reflect  all
adjustments  (consisting  only  of  normal  recurring   accruals)
necessary  for  a fair presentation of the results of  operations
for  the  periods presented.  The results of operations  for  the
periods  presented are not necessarily indicative of the  results
to be expected for the full year.

                                3
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                  RED HORSE ENTERTAINMENT CORPORATION
                     (A Development Stage Company)
                            Balance Sheets


                                ASSETS

                                                 March  31,       December 31,
                                                    2000              1999

CURRENT ASSETS

 Cash                                            $  234,751         $ 232,783

  Total Current Assets                              234,751           232,783

PROPERTY AND EQUIPMENT (Note 3)                           -                 -

  TOTAL ASSETS                                   $  234,751         $ 232,783


                 LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

 Accounts payable                                $    2,594            $  189

  Total Current Liabilities                           2,594               189

STOCKHOLDERS' EQUITY

Common stock: 50,000,000 shares authorized at $0.001
 par value; 455,073 shares issued and outstanding       455               455
Additional paid-in capital                          423,353           423,353
Deficit accumulated during the development stage   (191,651)         (191,214)

  Total Stockholders' Equity                        232,157           232,594

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $  234,751        $  232,783


          See accompanying notes to the financial statements.

                                   4
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                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                      Statements of Operations


                                                                          From
                                                                  Inception on
                                                                   December 4,
                                  For the Three Months Ended          1987 to
                                          March 31,                  March 31,
                                     2000             1999               2000

REVENUES                            $    -          $    -          $     -

EXPENSES

 Bad debt expense                        -               -           35,000
 Outside services                      505           1,196            9,923
 Professional fees                   2,752           1,911           79,577
 Rent                                    -               -            6,545
 Travel                                  -               -           18,336
 Administrative expenses                46           2,085           28,073
 Depreciation                            -             152            1,546
 Amortization                            -               -              472
 Interest                                -               -              418

  Total Expenses                     3,303           5,344          179,890

OTHER INCOME

 Interest income                     2,866           2,233          123,363

  Total Other Income                 2,866           2,233          123,363

NET LOSS BEFORE
  DISCONTINUED OPERATIONS             (437)         (3,111)         (56,527)

LOSS FROM DISCONTINUED
 OPERATIONS (Note 6)                     -               -         (911,314)

GAIN ON DISPOSAL OF
  DISCONTINUED OPERATIONS (Note 6)       -               -          776,190

NET LOSS                          $   (437)       $ (3,111)      $ (191,651)

BASIC LOSS PER SHARE              $   (0.00)      $ (0.01)

WEIGHTED AVERAGE SHARES
 OUTSTANDING                        455,073        455,073


       See the accompanying notes to the financial statements.

                                  5
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                      Statements of Cash Flows


                                                                          From
                                                                  Inception on
                                              For the Three        December 4,
                                              Months Ended           1987 to
                                               March 31,            March 31,
                                             2000         1999         2000

CASH FLOWS FROM OPERATING ACTIVITIES

 Net loss                                  $  (437)    $ (3,111)    $(191,651)
 Adjustments to reconcile net loss to net cash
  provided (used) by operating activities:
  Depreciation                                   -          152         1,546
  Amortization                                   -            -           472
  Loss on disposal of discontinued operations    -            -      (776,190)
 Changes in operating assets and liabilities:
  Increase in accounts payable               2,405            -         2,594
  Increase in accrued expenses                   -            -       286,334

 Net Cash Provided (Used) by Operating
   Activities                                1,968       (2,959)     (676,895)

CASH FLOWS FROM INVESTING ACTIVITIES

 Organization expenses                           -            -       (10,925)
 Sale of fixed assets                            -            -         4,000
 Purchase of equipment and leasehold
   improvements                                  -            -    (1,255,237)

 Net Cash (Used) by Investing Activities         -            -    (1,262,162)

CASH FLOWS FROM FINANCING ACTIVITIES

 Proceeds from debentures                        -            -     1,750,000
 Proceeds from stock issuance                    -            -       212,984
 Sale warrants                                   -            -           100
 Exercise of warrants                            -            -       210,724

  Net Cash Provided by Financing Activities      -            -     2,173,808

INCREASE IN CASH AND CASH EQUIVALENTS        1,968       (2,959)      234,751

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                      232,783      232,359             -

CASH AND CASH EQUIVALENTS AT END OF
 PERIOD                                 $  234,751    $ 229,400     $ 234,751

         See accompanying notes to the financial statements.

                                  6
<PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                Statements of Cash Flows (Continued)


                                                                         From
                                                                 Inception on
                                                                  December 4,
                                     For the Three Months Ended      1987 to
                                            March 31,               March 31,
                                        2000         1999             2000

SUPPLEMENTAL CASH FLOW INFORMATION

 Cash paid for interest                $    -       $    -         $   418
 Cash paid for taxes                   $    -       $    -         $     -

NON-CASH INVESTING ACTIVITIES

 Sale of subsidiary (Note 6)           $    -       $    -       $ 2,023,767


         See accompanying notes to the financial statements.

                                  7
<PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2000 and December 31, 1999


NOTE 1  -  ORGANIZATION  AND  CORPORATE HISTORY

       The  Company  was  incorporated in the  State  of  Nevada  on
       December  4,  1987, under the name of Quantus  Capital,  Inc.
       Since  its  inception  it has not engaged  in  a  significant
       business  activity  and is considered  to  be  a  development
       stage   company.   The  articles  of  incorporation  of   the
       Company  state  that  its  purpose  is  to  engage   in   the
       business  of  making investments and acquisition  of  assets,
       properties  and  businesses and  to  engage  in  any  an  all
       other lawful business.

       Pursuant  to  a  special  meeting  of  shareholders  held  on
       March  9,  1992,  the  Company made  the  following  changes:
       (1)  To  issue 1,556,000 shares of stock to acquire  100%  of
       the  outstanding  shares  of  127  Main  Street  Corporation,
       (the   former   Subsidiary)  a  Delaware  Corporation.    (2)
       Adopted  a  plan of recapitalization whereby the  issued  and
       outstanding  shares of the Company were reverse  split  on  a
       one  for  five  basis.  The shares outstanding  were  reduced
       from   7,780,000   to  1,556,000.   (3)   The   articles   of
       incorporation  were amended changing the name  to  Red  Horse
       Entertainment  Corporation.   All  references  to  number  of
       shares  have  been  retroactively  restated  to  reflect  the
       reverse stock split.

       During   September   1992,   the  former   Subsidiary   began
       operating    a    casino   in   Central    City,    Colorado,
       subsequently operations were terminated (Note 6).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       a.  Recognition of Income

       The  Company  recognizes income and expenses on  the  accrual
       basis  of  accounting.  The fiscal year of the  Company  ends
       on December 31.

       b.  Basic Loss Per Share

        The  computation  of basic loss per share  of  common  stock
        is  based  on  the weighted average number of shares  issued
        and   outstanding  during  the  period  of   the   financial
        statements as follows:
                                                       March 31,
                                                 2000           1999

        Numerator - loss                         $  (437)   $  (3,111)
        Denominator - weighted average
          number of shares outstanding           455,073      455,073

        Loss per share                         $   (0.00)   $   (0.01)

                                8
 <PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                  Notes to the Financial Statements
                March 31, 2000 and December 31, 1999


NOTE  2  -  SUMMARY OF  SIGNIFICANT ACCOUNTING POLICIES (Continued)

        c.  Provision for Taxes

        No  provision  for taxes has been recorded due to  operating
        losses at December 31, 1994, 1993 and 1992.  The Company has
        net operating loss carryovers for both book and tax purposes
        of  approximately $191,000 which expire in  2007  and  2008.
        The  potential tax benefit of the loss carryovers  has  been
        offset in full by a valuation allowance.

        d.  Cash and Cash Equivalents

        The  Company considers all highly liquid investments with  a
        maturity of three months or less when purchased to  be  cash
        equivalents.

        e.  Estimates

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

NOTE 3 -  PROPERTY AND EQUIPMENT

        Property and equipment consists of the following:

                                                March  31,    December 31,
                                                   2000          1999

        Office equipment                      $    1,071      $   1,071

        Less accumulated depreciation             (1,071)        (1,071)

              Total Property and Equipment    $        -      $       -

        Equipment  is being depreciated over eight years  using  the
        straight-line  method.  Depreciation expense  for  the  year
        ending  December  31, 1999 and the period ending  March  31,
        2000 was $152 and $-0-, respectively.

NOTE 4 -  PUBLIC OFFERING

        In  1988,  the  Company  sold 38,537 units  to  the  general
        public.   Each  unit consisted of one share of common  stock
        and one "A" warrant that could be used to purchase one share
        of common stock for $22.50 per share within two years of the
        effective  date  of the offering, and one "B"  warrant  that
        could  have been used to purchase one share of common  stock
        for  $37.50 per share, which expired November 8, 1993.   The
        Company received cash of $289,040 as a result of this public
        offering.

                                  9
 <PAGE>

                 RED HORSE ENTERTAINMENT CORPORATION
                    (A Development Stage Company)
                  Notes to the Financial Statements
                March 31, 2000 and December 31, 1999

NOTE 5 - WARRANTS OUTSTANDING

        As   a   result  of  the  Company's  public  offering,   the
        underwriter  purchased  a  warrant  that  entitles  him   to
        purchase 3,853 units at a price of $9.375 per unit.

        In  conjunction with the Company's acquisition of  127  Main
        Street  Corporation, the shareholders  of  127  Main  Street
        Corporation were granted warrants or options to purchase  an
        aggregate  of 453,093 shares of common stock of  the  parent
        Company  for a period of five years at a price of $9.00  per
        share.  As of December 31, 1996, 351,212 warrants have  been
        exercised and the Company has received cash of $210,724.

NOTE 6 - DISCONTINUED OPERATIONS

        On  September 17, 1993, the Company decided to terminate the
        operations  of  its  former  subsidiary,  127  Main   Street
        Corporation, and the casino operations located at  127  Main
        Street,  Central City, Colorado.  Cost over  runs  resulting
        from  site  conditions  made it economically  unfeasible  to
        continue   operations.   Consequently,  the   facility   was
        abandoned and all lease options and improvements were  lost.
        The  following is a summary of income (loss) from operations
        of 127 Main Street Corporation:

               Revenue - 1992                          $   40,029
               Revenue - 1993                               4,982

                Total Revenue                              45,011

               Operating expenses - 1992                  670,363
               Operating expenses - 1993                  285,962

                Total Operating Expenses                  956,325

                Loss from Discontinued Operations     $  (911,314)
               Write  off  of assets - 1992           $(1,246,097)
               Gain on assumption of debt - 1993        2,022,287

          Gain on Disposal of Discontinued Operations   $ 776,190

NOTE 7 - DISPOSAL OF SUBSIDIARY - RELATED PARTY TRANSACTION

        On March 19, 1994, the Company entered into a stock purchase
        agreement whereby two officers of the Company purchased  all
        of   the   outstanding  shares  of  the   Company's   former
        subsidiary,  127 Main Street Corporation.  The  shares  were
        sold for the nominal amount of $500.

NOTE 8 - REVERSE STOCK SPLIT

        On  August 2, 1993, the shareholders of the Company approved
        a  30-for-1  reverse stock split.  The financial  statements
        have  been restated to reflect this change retroactively  to
        the beginning of the periods presented.

                                 10
 <PAGE>

               RED HORSE ENTERTAINMENT CORPORATION
                  (A Development Stage Company)
                Notes to the Financial Statements
              March 31, 2000 and December 31, 1999


NOTE 9 - GOING CONCERN

        The   Company's  financial  statements  are  prepared  using
        generally  accepted accounting principles  applicable  to  a
        going   concern   which  contemplates  the  realization   of
        assets   and  liquidation  of  liabilities  in  the   normal
        course  of  business.  However, the Company  does  not  have
        significant  cash  or  other material assets,  nor  does  it
        have   an   established   source   of   operating   revenues
        sufficient  to  cover its operating costs and  to  allow  it
        to  continue  as a going concern.  It is the intent  of  the
        Company  to  seek  a  merger  with  an  existing,  operating
        company.   In  the  interim,  shareholders  of  the  Company
        have    committed   to   meeting   its   minimal   operating
        expenses.

NOTE 10 - STOCK OPTIONS

        On  February  1,  1994, the Company issued  options  to  two
        of  its  officers,  for each one to purchase  25,000  shares
        of  common  stock  at  a  price of  40.50  per  share.   The
        option is for a term of five years.

NOTE 11 - CONCENTRATIONS OF RISK

        The  Company  maintains  a money market  investment  account
        which  accounts for $230,880 of the balance  of  cash.   The
        account  is  not insured by the FDIC, nor is  it  guaranteed
        by  the  bank.   The  investment is  subject  to  investment
        risk, including potential principle loss.

                               11
<PAGE>


                             ITEM 2.

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION OR PLAN OF OPERATION


Three Month periods Ended March 31, 2000 and 1999

The  Company  had  no  revenue from continuing  operations  for  the
three-month periods ended March 31, 2000 and 1999.

General  and  administrative expenses for the  three  month  periods
ended  March  31,  2000  and 1999, consisted  of  general  corporate
administration,  legal  and professional  expenses,  and  accounting
and  auditing  costs.   These expenses were $3,303  and  $5,344  for
the   three-month   periods  ended  March   31,   2000   and   1999,
respectively.

Interest  income  in the three-month periods ended  March  31,  2000
and  1999,  was  $2,866 and $2,233, respectively.  As  a  result  of
the  foregoing  factors, the Company realized a  net  loss  of  $437
for  the  three months ended March 31, 2000, as compared  to  a  net
loss of $3,111 for the same period in 1999.

Liquidity and Capital Resources

At   March   31,   2000,   the  Company  had  working   capital   of
approximately  $232,157,  as compared to $232,594  at  December  31,
1999.   Working  capital  as of both dates  consisted  substantially
of   short-term   investments,  and  cash  and   cash   equivalents.
Although  the Company's most significant assets consist  largely  of
cash  and  cash  equivalents, the Company has no intent  to  become,
or  hold  itself  out to be, engaged primarily in  the  business  of
investing,  reinvesting,  or  trading in  securities.   Accordingly,
the   Company  does  not  anticipate  being  required  to   register
pursuant  to  the Investment Company Act of 1940 and expects  to  be
limited  in  its  ability to invest in securities, other  than  cash
equivalents  and government securities, in the aggregate  amount  of
over  40%  of  its  assets.  There can be  no  assurances  that  any
investment made by the Company will not result in losses.

Management  believes  that  the  Company  has  sufficient  cash  and
short-term  investments  to  meet  the  anticipated  needs  of   the
Company's   operations  through  at  least  the  next   12   months.
However,  there  can  be  no  assurances  to  that  effect,  as  the
Company  has  no  significant revenues and the  Company's  need  for
capital  may  change dramatically if it acquires an  interest  in  a
business  opportunity  during that period.   The  Company's  current
operating  plan  is to (i) handle the administrative  and  reporting
requirements  of  a  public company, and (ii) search  for  potential
businesses,  products, technologies and companies  for  acquisition.
At  present,  the  Company  has  no understandings,  commitments  or
agreements   with  respect  to  the  acquisition  of  any   business
venture,  and  there  can  be no assurance  that  the  Company  will
identify  a  business  venture  suitable  for  acquisition  in   the
future.   Further,  there  can  be no  assurance  that  the  Company
would  be  successful in consummating any acquisition  on  favorable
terms  or  that  it will be able to profitably manage  any  business
venture it acquires.

Forward-Looking Statement Notice

      When  used in this report, the words "may," "will,"  "expect,"
"anticipate,"  "continue,"  "estimate,"  "project,"  "intend,"   and
similar   expressions  are  intended  to  identify   forward-looking
statements  within  the  meaning of Section 27a  of  the  Securities
Act  of  1933  and  Section 21e of the Securities  Exchange  Act  of
1934  regarding  events, conditions, and financial trends  that  may
affect   the   Company's   future  plans  of  operations,   business
strategy,  operating  results,  and  financial  position.    Persons
reviewing this report are
                               12
<PAGE>

cautioned  that  any forward-looking statements are  not  guarantees
of  future  performance and are subject to risks  and  uncertainties
and  that  actual results may differ materially from those  included
within  the  forward-looking  statements  as  a  result  of  various
factors.   Such  factors are discussed under the headings  "Item  1.
Description  of  Business,"  and "Item 6.   Management's  Discussion
and  Analysis  of  Financial Condition and Results  of  Operations,"
and  also  include general economic factors and conditions that  may
directly  or  indirectly  impact the Company's  financial  condition
or results of operations.

                   PART II.  OTHER INFORMATION

Exhibits and Reports on Form 8-K.

     Reports on Form 8-K:  No reports on Form 8-K were filed by
the Company during the quarter ended March 31, 2000.

     Exhibits: Included only with the electronic filing of this
report is the Financial Data Schedule for the three month period
ended March 31, 2000 (Exhibit ref. No. 27).

                         SIGNATURES

     In accordance with the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                         RED HORSE ENTERTAINMENT CORPORATION


Date:   May 11, 2000      By:  /s/ Jack Gertino, Secretary

                               13
<PAGE>