A major casino development proposed by the Scotts Valley Band of Pomo Indians in Vallejo has encountered a significant obstacle after the U.S. Department of the Interior reversed an earlier decision that allowed gaming activities on the project site.
The ruling, issued Friday by Assistant Secretary for Indian Affairs William H. Kirkland III, concluded that the tribe failed to demonstrate a sufficient historical connection to the Vallejo property under the “restored lands” exception of the Indian Gaming Regulatory Act (IGRA). As a result, the parcel no longer qualifies for gaming under that provision, placing the future of the project in doubt and forcing the temporary suspension of casino operations that had begun only a week earlier.
The decision marks another chapter in a lengthy dispute surrounding the tribe’s effort to establish a gaming and residential development on approximately 160 acres in Solano County, near the junction of Interstate 80 and Highway 37.
“I have determined the Band has not demonstrated the requisite significant historical connection,” Kirkland stated in the decision, according to the Times-Herald. “Consequently, the Vallejo parcel does not qualify as restored lands within the meaning of applicable law, and the Band may not conduct gaming on the parcel pursuant to (Indian Gaming Regulatory Act’s) restored lands exception. I provide no opinion on whether the Band may game on the parcel pursuant to another exception.”
Temporary Casino Operations Halted
The Interior Department’s ruling arrived seven days after the tribe opened a preview casino at 200 Columbus Parkway. The temporary facility, housed in modular buildings, had begun operating on a limited basis for invited guests while the broader development plans continued to move forward.
Following the federal decision, the Scotts Valley Band confirmed that gaming activity at the preview venue has been suspended while it considers its next steps.
Tribal leadership immediately signaled its intention to challenge the ruling through the courts.
Chairman Shawn Davis expressed frustration with the outcome and maintained that the tribe’s case for gaming eligibility remains strong.
“The administrative record overwhelmingly supports the Tribe’s gaming eligibility. We will move quickly to challenge the decision in federal court,” Davis said.
According to statements provided following the ruling, the tribe plans to pursue legal action in an effort to overturn the Interior Department’s conclusion.
Long-Running Project Faces Renewed Uncertainty
The Vallejo proposal represents a substantial development project valued at approximately $700 million. Plans call for an eight-story casino operating around the clock, along with restaurants, bars, a ballroom, tribal housing, an administration building, parking facilities and a 45-acre biological preserve.
The broader project also includes 24 single-family homes intended for tribal members and additional government facilities. Earlier approvals had allowed the land to be taken into trust for gaming, housing and governmental purposes.
In January 2025, the Interior Department approved the project under the restored lands provision, determining that the parcel qualified for gaming. That decision enabled the tribe to move ahead with plans for a larger Class III casino operation.
However, the matter returned to scrutiny after opposing tribes challenged the approval. The Trump administration announced a review of the determination in March, leading to additional legal disputes and a fresh examination of the project’s eligibility.
The federal government later acknowledged that its earlier approval may have involved a “legal error” and indicated that evidence submitted by neighboring tribes raised questions about whether the site qualified under IGRA requirements.
In October, Judge Trevor McFadden of the U.S. District Court for the District of Columbia rejected efforts by Scotts Valley to block the reconsideration process. The court concluded that the Interior Department had authority to revisit its earlier decision and required the agency to issue a final determination before the end of July.
McFadden also cautioned that Scotts Valley “would be ill-served” by relying on the prior gaming eligibility determination while the review remained underway.
Opposition From Neighboring Tribes Continues
The proposed casino has faced sustained resistance from several tribal nations in Northern California.
Among the most vocal opponents has been the Yocha Dehe Wintun Nation, operator of Cache Creek Casino Resort. The tribe has argued that the Vallejo site lies within Patwin ancestral territory and has challenged Scotts Valley’s historical claims to the area.
A key point of contention involves assertions regarding Chief Shuk Augustine, a Pomo leader who died in 1903. Scotts Valley has cited Augustine’s connection to Vallejo as part of its historical argument, while Yocha Dehe has disputed that claim, maintaining that Augustine never lived in the area.
Other tribes opposing the project include the Lytton Rancheria, United Auburn Indian Community and the Kletsel Dehe Wintun Nation.
While Yocha Dehe did not comment publicly on the latest Interior Department decision, Lytton Rancheria Chairperson Andy Mejia welcomed the ruling.
“The decision is an encouraging development and reflects the importance of ensuring that federal decisions affecting the Tribal Nations are made in a manner consistent with the law. This matter has never been about opposing another tribe. It has always been about preserving the integrity of the federal process and ensuring that the same legal standards apply in every case,” Mejia said.
He added that additional legal proceedings remain unresolved.
“While today’s action is significant, it’s not the final chapter,” Mejia continued. “Important legal issues remain before the courts, and we will continue to participate in that process to ensure these issues receive a full and fair review.”
With the Interior Department’s latest determination now in place, the future of the Vallejo casino project will likely depend on the outcome of forthcoming federal court proceedings. For now, the temporary casino remains closed and the tribe’s plans for one of California’s largest proposed tribal gaming developments have returned to legal uncertainty.