The Scotts Valley Band of Pomo Indians sued the U.S. Department of the Interior on Aug. 7 after the agency rescinded approval for a Vallejo casino and ordered a temporary, invitation-only modular site to close one week after it opened. The Interior found the parcel did not qualify as "restored lands," a ruling the tribe calls "arbitrary, capricious" and inconsistent with the Indian Gaming Regulatory Act. The paused proposal is a $700 million, 160-acre project that includes an eight-story casino tower and a 45-acre biological preserve. The tribe seeks expedited court relief to reinstate both the temporary operations and the broader approval.
Scotts Valley Tribe Sues Interior After Feds Shut $700M Vallejo Casino One Week After Opening
An image collage containing 2 images, Image 1 shows Illustration of the Scotts Valley Resort building, Image 2 shows Native American men and boys in traditional tribal regalia, including feathered headdresses and beaded necklaces
The Scotts Valley Band of Pomo Indians has filed a federal lawsuit after the U.S. Department of the Interior reversed an earlier approval for the tribe's planned Vallejo casino and ordered a temporary, invitation-only gaming site to close just one week after it opened.
An invitation-only preview casino in Vallejo was forced to shut down after federal officials blocked a Native American tribe's planned development over land eligibility concerns. Stand with Scotts Valley
In an Aug. 7 complaint, the tribe asks a court to set aside the Interior Department's July 30 decision and restore authorization for the larger development, which the tribe values at roughly $700 million. The temporary modular casino, located near Columbus Parkway and Interstate 80, opened on July 25 and was ordered to cease operations on Aug. 1 after the department rescinded its earlier sign-off.
The Aug. 7 lawsuit wants the courts to reverse the decision and put its massive casino plans back on the table. Stand with Scotts Valley
Federal Finding: Assistant Secretary for Indian Affairs William H. Kirkland III determined that the Vallejo parcel does not qualify as "restored lands" under the federal exception that would allow gaming at that site. Following a lengthy review, the department concluded the tribe had not demonstrated the "significant historical connection" to the property required for restored-lands status.
The Scotts Valley Band of Pomo Indians. Stand with Scotts Valley
The tribe's filing, reviewed by Law360, calls the July 30 ruling "arbitrary, capricious, contrary to law, [and] unsupported by the administrative record." It argues the decision conflicts with the Indian Gaming Regulatory Act and prior court precedent and asks the court to reinstate both the temporary invitation-only operations and the broader approval needed to build the full project.
The Project: The proposed development covers about 160 acres near I-80 and Columbus Parkway and would include an eight-story casino tower, multiple restaurants and bars, a ballroom, a parking garage, roughly two dozen homes, tribal offices and a 45-acre biological preserve. Construction of the full resort and associated facilities has been paused pending the outcome of the legal challenge.
The legal dispute centers on how federal restored-lands standards apply to this property and whether the Interior Department properly applied those standards in reversing its earlier approval. The tribe seeks expedited relief so construction and operations can resume while the case is decided.
Next Steps: The court will consider the tribe's request to set aside the Interior Department's decision. The outcome will determine whether the temporary site can reopen and whether the tribe can move forward with plans for the full $700 million development.
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