The Scotts Valley Band of Pomo Indians’ hopes to construct a $700 million casino in Vallejo, California have been dashed. The Department of Interior (DOI) has ruled that the tribe’s land doesn’t qualify for a gaming establishment under the Gaming Regulatory Act.
The move reversed a previous ruling from 2025. DOI officials said the tribe lacked a significant historical connection to the land to qualify under the Indian restored lands exception.
The tribe has vowed to continue the fight.
“The administrative record overwhelmingly supports the tribe’s gaming eligibility,” Scotts Valley Chairman Shawn Davis said. “We will move quickly to challenge the decision in federal court.”
Vallejo, California, Loses Out On Tax Dollars
The ruling continues a decade-long legal back-and-forth between the tribe and the DOI. The ruling forces the tribe to close a temporary casino it set up in July.
The order not only costs the tribe, but also the city of Vallejo. The city was expected to receive more than $400,000 annually in tax revenue from the temporary casino alone, according to SFGate.com.
“We were hopeful this could be an economic benefit to the city,” Vallejo Vice Mayor Diosdado Matulac said. “Scotts Valley tribe was willing to provide community benefits and support the city.”
Tribal Gaming Disagreements
The Scotts Valley Band faced pushback from other tribes. The tribes argued that the planned casino violated federal law and tribal gaming regulations. The issue is part of a broader legal battle among tribes. Some claim new casino properties would negatively impact their own gaming operations.
The Lytton Band of Pomo Indians owns the nearby San Pablo Lytton Casino and backed the DOI move. In a letter to the Vallejo City Council, tribe Chairman Andy Mejia said the Scotts Valley project would “inflict serious economic harm on nearby tribes, which operate successful gaming enterprises.”
Native American casinos in California generate $9 billion in revenue annually. Tribal gaming is also a major part of the overall U.S. casino landscape, with properties located in 10 states. These groups have expanded into other parts of gaming and hospitality over the years, including online gaming and sports betting.
For example, Maine legalized online gaming in January through the state’s four federally recognized tribal groups. In California, tribes are seeking to ask voters to legalize sports betting in 2028.
