U.S. Department of the Interior Reverses Gaming Approval for Scotts Valley Pomo Casino

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The tribe have said they will prepare for legal challenge

The U.S. Department of the Interior has pulled back its gaming approval for the Scotts Valley Band of Pomo Indians’ Vallejo project, forcing the tribe’s preview casino to shut down only days after opening and leaving the larger scheme in limbo. 

In a written reversal, Assistant Secretary William H. Kirkland III said, “Upon reconsideration, I conclude that, although the Band has satisfied the “modern connections” and “temporal connection” requirements, the Band has not established a significant historical connection to the Parcel. Therefore, the Vallejo Parcel does not qualify as restored lands”. 

This finding undercuts the tribe’s claim under the Indian Gaming Regulatory Act’s restored-lands exception.

Legal Setback

The move marked another twist in a dispute that has run for years and has drawn fierce opposition from neighbouring tribes. Interior had approved the land transfer on January 10, 2025, allowing 160.33 acres in Vallejo to be taken into trust for gaming and related uses. 

The department later opened a review in March after objections from rival tribal operators, then kept the trust status intact while re-examining the gaming ruling. By the end of July, a federal judge had ordered Interior to issue a final decision.

Chairman Shawn Davis said in a statement provided to Tribal Business News that the administrative record “overwhelmingly supports the tribe’s gaming eligibility” and that the tribe would “move quickly” to seek relief in federal court. 

The temporary closure affects the modular preview casino, while the broader master plan , including an eight-storey casino, hotel-style amenities, housing and a biological preserve , remains tied up in litigation. 

What Happens Next

Scotts Valley said its gaming operations are suspended for now as it prepares its legal challenge. 

Nearby tribes, including Yocha Dehe Wintun Nation, Lytton Rancheria, United Auburn Indian Community and Kletsel Dehe Wintun Nation, had opposed the project, arguing the site falls within ancestral territory claims.