California tribe’s $700M casino halted after one week

A California tribe’s casino jackpot turned into a bust after just one week.

The Scotts Valley Band of Pomo Indians was forced to hit pause on its newly opened, invitation-only preview casino in Vallejo after federal officials pulled the plug on the tribe’s larger $700 million gambling resort plan.

The temporary casino, housed in modular buildings near Columbus Parkway, opened its doors July 25 — but was shut down by Aug. 1 after the U.S. Department of the Interior 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.

“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 Indian Gaming Regulatory Act’s) restored lands exception,” Kirkland wrote in a decision issued last week.

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.

Instead, the tribe’s big casino gamble is now stuck at the legal roulette table.

The Interior Department dealt the tribe a surprise plot twist, reversing an earlier federal decision that had cleared the way for the Lake County-based group’s casino plans.

The ruling was a win for opponents, including the Yocha Dehe Wintun Nation, which argued the Vallejo site sits within the ancestral territory of the Patwin people and challenged the Scotts Valley Band’s historical connection to the land.

But the Scotts Valley Band isn’t folding its cards just yet.

Tribal Chairman Shawn Davis said the tribe plans to take the fight to federal court.

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

The federal government initially approved the site for gaming at the beginning of 2025, but later reconsidered whether the property met the requirements for restored lands.

The tribe opened its preview casino just days before the Interior Department dealt its reversal, giving invited guests a brief glimpse of what was supposed to become a major Bay Area gaming destination.

Now, gaming operations will remain frozen while the tribe weighs its legal options.

The casino shutdown comes as California’s tribal gaming industry continues to expand — and as fights over land, sovereignty and casino revenue heat up across the state.

For the Scotts Valley Band, the dream of a $700 million resort isn’t dead yet. But for now, the house has the final say.

The casino clash comes as California’s tribal gaming industry finds itself in the middle of a much bigger fight over casino expansion, land rights and billions in potential revenue.

As previously reported by The Post, Gov. Gavin Newsom recently signed a new 25-year gaming compact with the Fort Mojave Indian Tribe that critics say gives away California’s future share of tribal casino revenue.

The agreement allows the tribe to operate up to two casinos with as many as 1,200 slot machines and other Las Vegas-style games on eligible trust land in San Bernardino County — but unlike its previous deal, it no longer requires revenue-sharing payments to the state.

Instead, Fort Mojave would primarily cover regulatory costs and contribute a small portion of gaming revenue toward local impact mitigation if it operates more than 350 gaming devices.

Critics argue the shift reflects California’s shrinking leverage in tribal gaming negotiations. 

Kyle Kirkland, president of the California Gaming Association and owner of Club One Casino in Fresno noted that the state is leaving billions on the table.

“[California] is actually giving up billions annually,” Kirkland said. “In the short run, in any other state they would be giving up to 10% to 50% of slot revenue.”

The debate comes as tribal casinos continue to rake in record cash, with tribal gaming generating $46.2 billion in gross gaming revenue last year, according to Casino.org.

For the Scotts Valley Band, the dream of a $700 million resort isn’t dead yet. But for now, the house has the final say.

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