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A judge in California has ruled in favor of the Federated Indians of Graton Rancheria (FIGR) and blocked plans for a Koi Nation casino development.

The development had been approved by the U.S. Department of the Interior (DOI), but the FIGR filed a lawsuit challenging the decision.

Judge Rita F. Lin of the U.S. District Court for the Northern District of California ruled that the DOI official who authorized the land-into-trust transaction and gaming approval lacked the necessary authority.

The court also determined that the DOI did not properly consult with FIGR as required under the National Historic Preservation Act (NHPA). Additionally, it failed to adequately consider cultural resource impacts under the National Environmental Policy Act (NEPA).

The ruling halts the plans for the Koi Nation’s proposed casino project on the Shiloh Parcel. The land was placed into trust for the benefit of the development.

The location of the development was just 15 miles away from the FIGR’s Sonoma County resort.

Governor Newsom Opposes Casino With FIGR Backing

In addition, Governor Gavin Newsom and the state of California filed its own lawsuit against the DOI. After filing the lawsuit, Greg Sarris, Chair of the FIGR, commented: “We strongly support California Governor Gavin Newsom’s suit challenging the Interior Department’s rushed, illegal decision.”

Newsom has been accused of a quid pro quo in the case. It emerged that before filing the lawsuit, FIGR had donated $2 million to Newsom and his wife, Jennifer Siebel Newsom.

The Governor’s office strongly objected to the accusations, stating: “Any suggestion that the governor’s decisions were influenced by public, transparent donations… isn’t just baseless – it’s insulting and offensive.” 

His wife co-founded The California Partners Project, which received a $1.8 million donation from the FIGR. She also denied that the money had influenced her husband.

“Neither the First Partner nor the Governor receives any personal financial benefit from its work or from any donations,” she commented.

Koi Nation Calls For Support

The Koi Nation continues to call for support for the Shiloh casino in a petition on its website. The page has not been updated to reflect the recent ruling, stating: “Your support has helped the Koi Nation secure approvals from the U.S. Department of the Interior’s Bureau of Indian Affairs”.

It said that with the approval, the tribe “now has for the first time in over a century a homeland on which it can truly enjoy economic self-sufficiency and self-governance for the benefit of its current and future generations of tribal citizens.”

The ruling that stops the casino project concludes by stating that the FIGR and DOI have until September 16 to come to an agreement reflecting the judgment.

It states: “The parties shall meet and confer and jointly propose a form of final judgment that reflects this order by no later than September 16, 2025. IT IS SO ORDERED.”

Adam Roarty

Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting...