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California Casino Plans on Hold as Tribe Faces Legal Setback

California
Image: Tina Chelidze

A plan to build a new casino in California’s Solano County has hit a snag after an unfavorable ruling from the Department of the Interior.

The Scotts Valley Band of Pomo Indians hopes to build a 648,000-square-meter casino in Vallejo, at the intersection of Interstate 80 and Highway 37, earmarking $700 million for the project.

But the Department of the Interior has ruled against the casino plan. It stated that the tribe failed to prove its association with the plot, the media outlet Times-Herald reported.

The ruling also means the Band must suspend its “temporary” casino operations, which it opened in late July. The temporary casino is currently housed in portable cabins near Columbus Parkway.

“I have determined the Band has not demonstrated the requisite significant historical connection,” said William Kirkland III, the Assistant Secretary for Indian Affairs at the Department of the Interior.

Tribal casinos have enjoyed a strong year so far, posting record-high revenues for the first half of 2026.

Other tribal groups throughout the US have also embarked on a range of new building projects, in states such as Arizona and North Carolina.

California Casino: Plans on Hold

In January last year, the Scotts Valley Band believed it had scored a breakthrough when the Department of the Interior granted it gaming eligibility for the plot.

However, it followed up later the same year by reversing its judgment, noting that it had made a “legal error.”

“The Vallejo parcel does not qualify as restored lands within the meaning of applicable law,” said Kirkland in a statement late last week.

Vallejo City Hall, in Solano County, California.
Vallejo City Hall, in Solano County, California. (Image: Sanfranman59 [CC BY-SA 3.0])

Kirkland added that he would provide “no opinion on whether the Band may game on the parcel pursuant to another exception.”

In addition to a casino, the tribe had also revealed plans to build 24 detached houses and a biological preserve. The project also included a parking lot and a tribal administration building.

The tribe said it expected the casino to be open 24 hours a day and seven days a week.

Band Readies Legal Challenge

Officials said the Band will launch a legal challenge to overturn the ruling at the federal level.

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

The Band had been hoping that the Department would help it reverse an October ruling from a district court in the District of Columbia.

The court had rejected the Band’s bid to invalidate reconsideration processes in October. It noted that evidence submitted by other tribes “raises questions” about whether the site was suitable for gaming.

Tribal Groups Voice Opposing Claims

The Band’s claim has put it at loggerheads with other tribal groups. These include the Yocha Dehe Wintun Nation and the Lytton Rancheria.

The former says the land belongs to the ancestors of the Patwin tribes. It also said a construction project at the plot would cause environmental damage.

Last year, Yocha Dehe Wintun Nation officials disputed the Band’s claims that a former chief, Shuk Augustine, who died in 1903, had lived in Vallejo.

The Chief used the plot where the Band wants to build the casino, Scotts Valley officials claimed.

Andy Mejia, Lytton Rancheria’s Chair, welcomed the latest decision, calling it “an encouraging development.”

“This matter has never been about opposing another tribe,” Mejia told the same media outlet. “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 Lytton Rancheria is braced for more legal developments.

“While today’s action is significant, it’s not the final chapter,” Mejia said.

Lytton Rancheria said it would “continue to participate” in future legal processes.

Tim Alper

Tim Alper iGaming Journalist

Tim Alper is a journalist covering betting news and regulation for CasinoBeats, with a focus on regulatory developments and international markets. He reports on breaking stories across Europe and Asia, including gambling law changes and crackdowns on illegal betting platforms.

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