Vallejo Casino in California Loses Approval as Department of the Interior Reverses Decision

^{California Gov. Gavin Newsom had originally publicly opposed building the Scotts Valley Casino in Vallejo. (Photo courtesy of Office of California Governor via AP)}

The U.S. Department of the Interior reversed an earlier determination that had allowed the Scotts Valley Band of Pomo Indians to develop a casino in California on Friday, forcing the tribe to close a temporary gaming facility in Vallejo that it had opened less than a week earlier.

The July 31 decision found that the Scotts Valley Band had not met the “restored lands” exception under the Indian Gaming Regulatory Act (IGRA), pushing the 160-acre Vallejo casino project back into a legal battle over its future.

Vallejo Casino Mired in Legal Challenges

The Department of the Interior (DOI) approved the Scotts Valley Casino Project in the final days of the Biden Administration, one of several such casino approvals issued in January 2025. Other tribes heavily criticized these approvals, and California Gov. Gavin Newsom had also publicly opposed the Scotts Valley Casino.

The Trump administration announced it would review the original approval in March, at the request of opposing tribes, and the Interior Department later acknowledged the initial decision may have been based on "legal error." In October, a federal judge rejected an earlier attempt by Scotts Valley to block that reconsideration process from moving forward.

Despite those concerns, the Scotts Valley Band continued ahead with their casino ambitions in Vallejo. In June 2026, the Yocha Dehe Wintun Nation filed a lawsuit against both the City of Vallejo and the Vallejo City Council over plans to allow a temporary casino facility owned by the Scotts Valley Band. 

“The City of Vallejo’s decision to rush into a Memorandum of Understanding for the Scotts Valley project while the federal government is actively reconsidering whether the project is legal in the first place completely disregards the rule of law and proper process,” Yocha Dehe Wintun Nation Chairman Anthony Roberts said in a statement at that time.

Even with those legal questions hanging in the balance, Scotts Valley opened its preview casino on July 25. While the facility was a shadow of the planned permanent $700 million resort, with only a small number of Class II gaming machines in modular buildings, it was seen as an important step toward the legitimacy of its project.

“We will continue to work closely with city leaders as we pursue our vision of a world-class gaming and entertainment facility that drives long-term economic growth or our tribe, the City of Vallejo, and Solano County,” Scotts Valley Band Chairman Shawn Davis said in a statement.

Temporary Casino Closed While Tribe Mounts Legal Challenge

But that progress was short-lived. On July 31, Assistant Secretary for Indian Affairs William Henry Kirkland III sent a letter to the Scotts Valley Band reversing the earlier determination. The 39-page letter details questions over the “significant historical connection” requirements necessary for the tribe to meet the restored lands criteria for the parcel on which it wished to build the casino.

“For the reasons stated above, I have determined the Band has not demonstrated the requisite significant historical connection,” Kirkland wrote. “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 the IGRA’s restored lands exception.”

However, that doesn’t mean the battle for the Vallejo casino is over. While the temporary facility has had to suspend its operations for now, Kirkland noted that there might be other exceptions under IGRA that would allow the Scotts Band to offer gaming on that land. Additionally, the Scotts Band has vowed to challenge Kirkland’s decision in federal court.

“The administrative record overwhelmingly supports the Tribe’s gaming eligibility,” Scotts Valley Band Tribal Chairman Shawn Davis told Tribal Business News. “We will move quickly to challenge the decision in federal court.”