US Interior Department Rejects Proposed Vallejo Casino Project

Interior Department reverses earlier decision

The U.S. Department of the Interior has withdrawn its previous gaming eligibility determination for the Scotts Valley Band of Pomo Indians, concluding that the tribe failed to demonstrate a significant historical connection to the Vallejo property under the "restored lands" exception of the Indian Gaming Regulatory Act (IGRA). The decision effectively overturns a federal approval granted in early 2025 and places the casino project back into legal limbo. 

Temporary gaming operations suspended

The ruling also forced the suspension of operations at the tribe's recently opened temporary Class II gaming facility, which had begun operating only days earlier as a preview venue for the larger resort project. Tribal leaders confirmed that gaming activities have been halted while they prepare to challenge the federal decision in court. 

Tribe plans legal challenge

The Scotts Valley Band argued that the administrative record supports its eligibility and announced plans to file a lawsuit in federal court seeking to overturn the Interior Department's ruling. Tribal officials maintain that the project complies with federal gaming regulations and that the land qualifies for gaming under IGRA. 

Long-running dispute over tribal land

The proposed Vallejo development, valued at approximately $700 million, has faced years of legal and political opposition from neighboring tribes, including the Yocha Dehe Wintun Nation, which argues that the site lies within its ancestral Patwin homeland rather than territory historically connected to the Scotts Valley Band. The latest federal decision marks another chapter in the ongoing dispute over tribal sovereignty, historical land claims and casino expansion in Northern California.