California native tribe declares federal battle after $700M invite-only casino collapse

A California tribe is refusing to fold on a controversial $700 million casino project.

The Scotts Valley Band of Pomo Indians has sued the United States Department of Interior after the feds dealt the tribe a stunning blow last month, and forced them to suspend gambling at its new Vallejo casino just one week after it opened.

The Aug. 7 lawsuit wants the courts to reverse the decision and put its massive casino plans back on the table.

The temporary casino, housed in modular buildings near Columbus Parkway, opened its doors July 25 — but was shut down by Aug. 1 after the department reversed its approval for the project.

The agency pulled the plug on the tribe’s casino plans, ruling it hadn’t shown the required historical connection to the land needed to keep the gaming dream alive. Assistant Secretary for Indian Affairs William H. Kirkland III determined the Vallejo property did not qualify under a federal exception allowing gaming on restored tribal lands.

The tribe claims that the Interior Department’s July 30 ruling was “arbitrary, capricious, contrary to law, unsupported by the administrative record,” according to complaints reviewed by Law360. The tribe also maintains that the ruling flies in the face of the Indian Gaming Regulatory Act, as well as previous court rulings.

After the property was not deemed to be “restored lands,” the ruling sent the tribe’s $700 million casino dream straight to the penalty box, putting the sprawling 160-acre development near Interstate 80 and Columbus Parkway on ice.

The high-stakes project was no small bet: plans called for an eight-story casino, restaurants, bars, a ballroom, parking garage, two dozen homes, tribal offices and a 45-acre biological preserve.

The federal government initially gave the green light for the site to be used for gaming at the beginning of 2025, but later reconsidered whether the property met the requirements for restored lands.

After a lengthy review, the department flipped its position at the end of July, finding Scotts Valley had not established the “significant historical connection” to the property that is required for gaming.

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