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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OMB
                APPROVAL</font></div>
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              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;OMB
                Number:&#160;&#160;&#160;&#160; 3235-0060</font></div>
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Expires:&#160;&#160;&#160;&#160;&#160;&#160;
                March 31, 2006</font></div>
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Estimated
                average burden</font></div>
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;hours
                per response.......28.0</font></div>
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    <div><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 OR 15(d) of </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      Securities Exchange Act of 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                of Report (Date of earliest event reported):</font></div>
            </td>
            <td colspan="3" valign="top" width="39%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                27, 2006</font></div>
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            <td colspan="5" valign="top" width="79%">&#160;</td>
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            <td colspan="5" valign="top" width="79%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gaming
                &amp; Entertainment Group, Inc. </font></div>
            </td>
          </tr>
          <tr>
            <td colspan="5" valign="top" width="79%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
                name of registrant as specified in its charter)</font></div>
            </td>
          </tr>
          <tr>
            <td colspan="5" valign="top" width="79%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Utah</font></div>
            </td>
            <td colspan="3" valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">000-28399</font></div>
            </td>
            <td valign="top" width="19%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">59-1643698</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction</font></div>
            </td>
            <td colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission</font></div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer</font></div>
            </td>
          </tr>
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            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                incorporation)</font></div>
            </td>
            <td colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                Number)</font></div>
            </td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                No.)</font></div>
            </td>
          </tr>
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            <td valign="top" width="30%">&#160;</td>
            <td colspan="3" valign="top" width="30%">&#160;</td>
            <td valign="top" width="19%">&#160;</td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="53%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16821
                Escalon Dr., Encino, CA </font></div>
            </td>
            <td valign="top" width="7%">&#160;</td>
            <td valign="top" width="19%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91436</font></div>
            </td>
          </tr>
          <tr>
            <td colspan="3" valign="top" width="53%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of principal executive offices)</font></div>
            </td>
            <td align="left" valign="top" width="7%">&#160;</td>
            <td valign="top" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
          </tr>
          <tr>
            <td colspan="5" valign="top" width="79%">&#160;</td>
          </tr>
          <tr>
            <td colspan="2" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
                telephone number, including area code:</font></div>
            </td>
            <td colspan="3" valign="top" width="39%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(818</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
                400-5930</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="39%">&#160;</td>
            <td colspan="3" valign="top" width="39%">&#160;</td>
          </tr>
          <tr>
            <td colspan="5" valign="top" width="79%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
                Applicable</font></div>
            </td>
          </tr>
          <tr>
            <td colspan="5" valign="top" width="79%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                name or former address, if changed since last
                report.)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o
</font>Written
      communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font>Soliciting
      material pursuant to
      Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font>Pre-commencement
      communications
      pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o
</font>Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Potential
      persons who are to respond to the collection of information contained in this
      form </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>are
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>not
      required to respond unless the form displays a currently valid OMB control
      number.</strong></font></div>

    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">1
          of 5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div id="HDR">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      4 - MATTERS RELATED TO ACCOUNTANTS AND FINANCIAL
      STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      4.02 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
      27, 2006, the Company was notified by J.H. Cohn LLP, its then existing
      independent accountants, that action should be taken to prevent future reliance
      on a previously issued audit report and interim reviews for the following fiscal
      periods ended and included within: (i) Quarterly Report on Form 10-QSB for
      the
      three months ended September 30, 2004; (ii) Annual Report on Form 10-KSB for
      the
      fiscal year ended December 31, 2004; (iii) Quarterly Report on Form 10-QSB
      for
      the three months ended March 31, 2005; (iv) Quarterly Report on Form 10-QSB
      for
      the three months ended June 30, 2005; (v) Quarterly Report on Form 10-QSB for
      the three months ended September 30, 2005. The financial statements included
      in
      the above filings made pursuant to the Securities Exchange Act of 1934, as
      amended, should no longer be relied upon. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      way of
      background, on May 31, 2004, the Company received proceeds of $2,143,242, net
      of
      expenses of $301,758, from the sale of 244.5 units, at a price of $10,000 per
      unit, through a private placement (&#8220;Private Placement&#8221;). Each unit consisted of
      10,000 shares of common stock and a warrant to purchase 10,000 shares of common
      stock at $1.50 per share. The warrants expired on May 31, 2005. Pursuant to
      the
      private placement, the Company provided registration rights (&#8220;Registration
      Rights&#8221;) to the investors in the Private Placement and was obligated to file a
      registration statement (the &#8220;Registration Statement&#8221;) no later than July 15,
      2004 to register the shares of common stock and the shares of common stock
      underlying the warrants issued therein.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company did not file the Registration Statement by July 15, 2004, but rather
      filed it on March 3, 2005. Accordingly, the Company issued to the investors
      in
      the Private Placement a total of 563,250 shares of common stock, which
      represented 3% of the number of shares of common stock purchased by the
      investors, for each month, or part thereof, of such late filing. The shares
      of
      common stock were registered pursuant to the Registration Statement on Form
      S-3
      filed with the Securities and Exchange Commission and declared effective.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
      27, 2006, J.H. Cohn LLP notified us that The Emerging Issues Task Force ("EITF")
      is currently reviewing the accounting for securities with liquidated damages
      clauses as stated in EITF 05-04, "The Effect of a Liquidated Damages Clause
      on a
      Freestanding Financial Instrument Subject to EITF 00-19" (&#8220;EITF 05-04&#8221;). J.H.
      Cohn LLP further notified us that there are currently several views as to how
      to
      account for this type of transaction and that the EITF has not yet reached
      a
      consensus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Securities and Exchange Commission (&#8220;SEC&#8221;) recently&#160;announced its
      interpretation of the accounting for common stock and warrants with registration
      rights under EITF 00-19. The SEC concluded that for agreements containing
      registration rights where significant liquidated damages could be required
      to be
      paid to the holder of the instrument in the event the issuer fails to maintain
      the effectiveness of a registration statement for a preset time period, the
      common stock subject to such liquidated damages does not meet the tests required
      for&#160;stockholders' equity classification and accordingly must be reflected
      between liabilities and&#160; stockholders' equity&#160; in the balance sheet
      until the conditions are eliminated. In analyzing instruments under EITF 00-19,
      the SEC concluded that the likelihood or probability related to the failure
      to
      maintain an effective registration statement is not a factor.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      consultation with J.H. Cohn LLP it was determined that, in accordance with
      EITF
      00-19, "Accounting for Derivative Financial Instruments Indexed To, and
      Potentially Settled in the Company's Own Stock," (&#8220;EITF 00-19&#8221;) and EITF 05-04,
      because the maximum potential liquidated damages for failure to file and have
      the Registration Statement declared effective is greater than the difference
      between the fair value of registered and unregistered shares, the value of
      the
      common stock subject to such &#160;registration rights&#160;should be classified
      as temporary equity. Additionally, in accordance with EITF 00-19 and the terms
      of the warrants issued in the Private Placement, the fair value of the warrants
      should be recorded as a liability, with an offsetting reduction
      to&#160;stockholders' equity. The warrant liability is initially measured at
      fair value using the Black-Scholes option pricing model, and is then re-valued
      at each reporting date, with changes in the fair value reported as non-cash
      charges or credits to earnings. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">2
          of 5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historically,
      the Company classified the common stock and warrants with registration rights
      described above as&#160;stockholders' equity, as it believed these securities
      met the requirements necessary to record them as&#160;stockholders' equity.
      After further review in accordance with the SEC&#8217;s recent interpretation of EITF
      00-19 as it relates to these common shares and warrants subject to registration
      rights, the Company has concluded that its financial statements for the year
      ended December 31, 2004, and interim periods ended September 30, 2004, March
      31,
      2005, June 30, 2005 and September 30, 2005 must be restated. The restatement
      includes the reclassification of common stock subject to registration rights
      from stockholders' equity and into temporary equity, and the inclusion of the
      liability for the fair value of penalty common stock as of forty five (45)
      days
      after the closing date (July 15, 2004). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
      on
      the above determination, as of December 31, 2004, the Company reclassified
      $2,445,000 of common stock subject to registration rights from
      stockholders'&#160;equity and into temporary equity. In March 2005, such shares
      of common stock were registered under the Registration Statement on Form S-3
      filed with the SEC and declared effective. Accordingly, the Company reclassified
      $2,445,000 from temporary equity and into&#160;stockholders' equity.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the Company measured the initial fair value of the warrants on the
      closing date at $26,022 and recorded the fair value to warrant liability. At
      the
      end of each reporting period, the value of the warrants was re-measured based
      on
      the fair value of the underlying shares, and changes to the warrant liability
      and related &#8220;gain or loss in fair value of the warrants&#8221; was recorded&#160; as a
      non-cash charge or credit to earnings. The warrant liability was cancelled
      when
      the warrants expired on May 31, 2005. The fair value of the warrants was
      estimated using the Black-Scholes option-pricing model. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      the
      years ended December 31, 2005 and 2004, the non-cash gain on fair value of
      warrants was $2,717 and $23,305 respectively. The gain on fair value of warrants
      is due principally to the decrease in the market value of the common stock
      of
      the Company. The non-cash gain on fair value of warrants has no effect on the
      Company&#8217;s cash flows or liquidity. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the Company measured the initial fair value of the penalty common
      stock to be $86,365, and recorded as a non-cash charge. At the end of each
      reporting period, the increase in the penalty common stock was valued based
      on
      the fair value of the underlying shares, and changes to the penalty common
      stock
      liability and related non-cash charge was recorded. The penalty common stock
      liability was reclassified to&#160;stockholders'&#160;equity when the shares of
      common stock were registered under the Registration Statement on Form S-3 filed
      with the Securities and Exchange Commission and declared effective in March
      2005
      and the shares of common stock were issued.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      restatement adjustments to the Company's consolidated balance sheets and
      statements of operations for the fiscal year ended December 31, 2004 and the
      interim periods ended September 30, 2004, March 31, 2005, June 30, 2005 and
      September 30, 2005, have been disclosed in Note 3 to the Company&#8217;s Annual Report
      on Form 10-KSB for the fiscal year ended December 31, 2005 as filed with the
      SEC
      on April 17, 2006. Restated statements of cash flows for the interim periods
      have not been presented. The restatement adjustment had no effect on previously
      reported total operating, investing and financing activities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">3
          of 5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -7.2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      the determination to restate the financial statements for the periods noted
      above, management for the Company evaluated the effectiveness of our disclosure
      controls and procedures. This evaluation was done with the participation of
      our
      chief executive officer and principal executive officer, Tibor&#160;N. Vertes,
      and Gregory L. Hrncir, our President and principal financial and accounting
      officer. Given the evolving nature of EITF 00-19 and EITF 05-04, and the
      relatively recent interpretation of the SEC regarding accounting for common
      stock and warrants with registration rights under EITF 00-19, among other
      factors, management for the Company determined that our disclosure controls
      and
      procedures are effective to ensure that the information we are required to
      disclose in reports that we file or submit under the Exchange Act is recorded,
      processed, summarized, and reported in such reports within the time periods
      specified in the SEC&#8217;s rules and forms. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECTION
      9 &#8212; FINANCIAL STATEMENTS AND EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                statements of businesses acquired.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                forma financial information.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 27pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">4
          of 5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="right" valign="top" width="31%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Gaming
                &amp; Entertainment Group, Inc.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                May 23, 2006</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="48%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
            </td>
            <td align="left" valign="top" width="44%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gregory
                L. Hrncir</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gregory
                L. Hrncir</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Its:</font></div>
            </td>
            <td align="left" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="31%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="48%">&#160;</td>
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{"company-data": {"conformed-name": "GAMING & ENTERTAINMENT GROUP INC", "cik": "0001100356", "assigned-sic": "7389", "irs-number": "591643698", "state-of-incorporation": "UT", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28399", "film-number": "06862723"}, "business-address": {"street1": "6757 SPENCER STREET", "street2": ".", "city": "LAS VEGAS", "state": "NV", "zip": "89119-3912", "phone": "702-932-2274"}, "mail-address": {"street1": "6757 SPENCER STREET", "street2": ".", "city": "LAS VEGAS", "state": "NV", "zip": "89119-3912"}, "former-company": {"former-conformed-name": "NORSTAR GROUP INC", "date-changed": "19991203"}}
OMB
                APPROVAL
OMB
                Number:     3235-0060
Expires:      
                March 31, 2006
Estimated
                average burden
hours
                per response.......28.0
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 OR 15(d) of
The
      Securities Exchange Act of 1934
Date
                of Report (Date of earliest event reported):
March
                27, 2006
Gaming
                & Entertainment Group, Inc.
(Exact
                name of registrant as specified in its charter)
Utah
000-28399
59-1643698
(State
                or other jurisdiction
(Commission
(IRS
                Employer
of
                incorporation)
File
                Number)
Identification
                No.)
16821
                Escalon Dr., Encino, CA
91436
(Address
                of principal executive offices)
(Zip
                Code)
Registrant's
                telephone number, including area code:
(818
)
                400-5930
Not
                Applicable
(Former
                name or former address, if changed since last
                report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written
      communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
      material pursuant to
      Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
      communications
      pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Potential
      persons who are to respond to the collection of information contained in this
      form
are
not
      required to respond unless the form displays a currently valid OMB control
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SECTION
      4 - MATTERS RELATED TO ACCOUNTANTS AND FINANCIAL
      STATEMENTS
Item
      4.02
Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review
(b)
On
      March
      27, 2006, the Company was notified by J.H. Cohn LLP, its then existing
      independent accountants, that action should be taken to prevent future reliance
      on a previously issued audit report and interim reviews for the following fiscal
      periods ended and included within: (i) Quarterly Report on Form 10-QSB for
      the
      three months ended September 30, 2004; (ii) Annual Report on Form 10-KSB for
      the
      fiscal year ended December 31, 2004; (iii) Quarterly Report on Form 10-QSB
      for
      the three months ended March 31, 2005; (iv) Quarterly Report on Form 10-QSB
      for
      the three months ended June 30, 2005; (v) Quarterly Report on Form 10-QSB for
      the three months ended September 30, 2005. The financial statements included
      in
      the above filings made pursuant to the Securities Exchange Act of 1934, as
      amended, should no longer be relied upon.
By
      way of
      background, on May 31, 2004, the Company received proceeds of $2,143,242, net
      of
      expenses of $301,758, from the sale of 244.5 units, at a price of $10,000 per
      unit, through a private placement ("Private Placement"). Each unit consisted of
      10,000 shares of common stock and a warrant to purchase 10,000 shares of common
      stock at $1.50 per share. The warrants expired on May 31, 2005. Pursuant to
      the
      private placement, the Company provided registration rights ("Registration
      Rights") to the investors in the Private Placement and was obligated to file a
      registration statement (the "Registration Statement") no later than July 15,
      2004 to register the shares of common stock and the shares of common stock
      underlying the warrants issued therein.
The
      Company did not file the Registration Statement by July 15, 2004, but rather
      filed it on March 3, 2005. Accordingly, the Company issued to the investors
      in
      the Private Placement a total of 563,250 shares of common stock, which
      represented 3% of the number of shares of common stock purchased by the
      investors, for each month, or part thereof, of such late filing. The shares
      of
      common stock were registered pursuant to the Registration Statement on Form
      S-3
      filed with the Securities and Exchange Commission and declared effective.
On
      March
      27, 2006, J.H. Cohn LLP notified us that The Emerging Issues Task Force ("EITF")
      is currently reviewing the accounting for securities with liquidated damages
      clauses as stated in EITF 05-04, "The Effect of a Liquidated Damages Clause
      on a
      Freestanding Financial Instrument Subject to EITF 00-19" ("EITF 05-04"). J.H.
      Cohn LLP further notified us that there are currently several views as to how
      to
      account for this type of transaction and that the EITF has not yet reached
      a
      consensus.
The
      Securities and Exchange Commission ("SEC") recently announced its
      interpretation of the accounting for common stock and warrants with registration
      rights under EITF 00-19. The SEC concluded that for agreements containing
      registration rights where significant liquidated damages could be required
      to be
      paid to the holder of the instrument in the event the issuer fails to maintain
      the effectiveness of a registration statement for a preset time period, the
      common stock subject to such liquidated damages does not meet the tests required
      for stockholders' equity classification and accordingly must be reflected
      between liabilities and  stockholders' equity  in the balance sheet
      until the conditions are eliminated. In analyzing instruments under EITF 00-19,
      the SEC concluded that the likelihood or probability related to the failure
      to
      maintain an effective registration statement is not a factor.
In
      consultation with J.H. Cohn LLP it was determined that, in accordance with
      EITF
      00-19, "Accounting for Derivative Financial Instruments Indexed To, and
      Potentially Settled in the Company's Own Stock," ("EITF 00-19") and EITF 05-04,
      because the maximum potential liquidated damages for failure to file and have
      the Registration Statement declared effective is greater than the difference
      between the fair value of registered and unregistered shares, the value of
      the
      common stock subject to such  registration rights should be classified
      as temporary equity. Additionally, in accordance with EITF 00-19 and the terms
      of the warrants issued in the Private Placement, the fair value of the warrants
      should be recorded as a liability, with an offsetting reduction
      to stockholders' equity. The warrant liability is initially measured at
      fair value using the Black-Scholes option pricing model, and is then re-valued
      at each reporting date, with changes in the fair value reported as non-cash
      charges or credits to earnings.
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Historically,
      the Company classified the common stock and warrants with registration rights
      described above as stockholders' equity, as it believed these securities
      met the requirements necessary to record them as stockholders' equity.
      After further review in accordance with the SEC's recent interpretation of EITF
      00-19 as it relates to these common shares and warrants subject to registration
      rights, the Company has concluded that its financial statements for the year
      ended December 31, 2004, and interim periods ended September 30, 2004, March
      31,
      2005, June 30, 2005 and September 30, 2005 must be restated. The restatement
      includes the reclassification of common stock subject to registration rights
      from stockholders' equity and into temporary equity, and the inclusion of the
      liability for the fair value of penalty common stock as of forty five (45)
      days
      after the closing date (July 15, 2004).
Based
      on
      the above determination, as of December 31, 2004, the Company reclassified
      $2,445,000 of common stock subject to registration rights from
      stockholders' equity and into temporary equity. In March 2005, such shares
      of common stock were registered under the Registration Statement on Form S-3
      filed with the SEC and declared effective. Accordingly, the Company reclassified
      $2,445,000 from temporary equity and into stockholders' equity.
In
      addition, the Company measured the initial fair value of the warrants on the
      closing date at $26,022 and recorded the fair value to warrant liability. At
      the
      end of each reporting period, the value of the warrants was re-measured based
      on
      the fair value of the underlying shares, and changes to the warrant liability
      and related "gain or loss in fair value of the warrants" was recorded  as a
      non-cash charge or credit to earnings. The warrant liability was cancelled
      when
      the warrants expired on May 31, 2005. The fair value of the warrants was
      estimated using the Black-Scholes option-pricing model.
For
      the
      years ended December 31, 2005 and 2004, the non-cash gain on fair value of
      warrants was $2,717 and $23,305 respectively. The gain on fair value of warrants
      is due principally to the decrease in the market value of the common stock
      of
      the Company. The non-cash gain on fair value of warrants has no effect on the
      Company's cash flows or liquidity.
In
      addition, the Company measured the initial fair value of the penalty common
      stock to be $86,365, and recorded as a non-cash charge. At the end of each
      reporting period, the increase in the penalty common stock was valued based
      on
      the fair value of the underlying shares, and changes to the penalty common
      stock
      liability and related non-cash charge was recorded. The penalty common stock
      liability was reclassified to stockholders' equity when the shares of
      common stock were registered under the Registration Statement on Form S-3 filed
      with the Securities and Exchange Commission and declared effective in March
      2005
      and the shares of common stock were issued.
The
      restatement adjustments to the Company's consolidated balance sheets and
      statements of operations for the fiscal year ended December 31, 2004 and the
      interim periods ended September 30, 2004, March 31, 2005, June 30, 2005 and
      September 30, 2005, have been disclosed in Note 3 to the Company's Annual Report
      on Form 10-KSB for the fiscal year ended December 31, 2005 as filed with the
      SEC
      on April 17, 2006. Restated statements of cash flows for the interim periods
      have not been presented. The restatement adjustment had no effect on previously
      reported total operating, investing and financing activities.
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Following
      the determination to restate the financial statements for the periods noted
      above, management for the Company evaluated the effectiveness of our disclosure
      controls and procedures. This evaluation was done with the participation of
      our
      chief executive officer and principal executive officer, Tibor N. Vertes,
      and Gregory L. Hrncir, our President and principal financial and accounting
      officer. Given the evolving nature of EITF 00-19 and EITF 05-04, and the
      relatively recent interpretation of the SEC regarding accounting for common
      stock and warrants with registration rights under EITF 00-19, among other
      factors, management for the Company determined that our disclosure controls
      and
      procedures are effective to ensure that the information we are required to
      disclose in reports that we file or submit under the Exchange Act is recorded,
      processed, summarized, and reported in such reports within the time periods
      specified in the SEC's rules and forms.
SECTION
      9 — FINANCIAL STATEMENTS AND EXHIBITS
Item
      9.01
Financial
      Statements and Exhibits
(a)
Financial
                statements of businesses acquired.
Not
      applicable.
(b)
Pro
                forma financial information.
Not
      applicable.
(c)
Exhibits.
Not
      applicable.
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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 hereunto
      duly authorized.
Gaming
                & Entertainment Group, Inc.
(Registrant)
Date:
                May 23, 2006
By:
/s/
Gregory
                L. Hrncir
Gregory
                L. Hrncir
Its:
President
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