California tribe sues after $700M casino forced to close

A California tribe is refusing to fold on its controversial $700 million casino project.

The Scotts Valley Band of Pomo Indians last week sued the US Department of Interior after the feds dealt the tribe a stunning blow in July by forcing it to suspend gambling at its temporary invitation-only casino set-up that’s part of its larger developing Vallejo gambling spread — just a day after the site opened.

The tribe’s Aug. 7 lawsuit wants the courts to reverse the decision.

The targeted casino, housed in modular buildings near Columbus Parkway, began welcoming visitors July 25 but was shut down by Aug. 1 after the department reversed its approval for the project.

The federal agency said the tribe 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.

The tribe claims in its suit that the Interior Department’s ruling was “arbitrary, capricious, contrary to law, unsupported by the administrative record,” according to complaints reviewed by Law360.

The tribe also maintains that the ruling flies in the face of the Indian Gaming Regulatory Act, as well as previous court decisions.

After the property was not deemed to be “restored lands,” the ruling has put the tribe’s casino dream for the sprawling 160-acre development near Interstate 80 and Columbus Parkway on ice.

The high-stakes project is no small bet: plans call for an eight-story casino, restaurants, bars, a ballroom, parking garage, two dozen homes, tribal offices and a 45-acre biological preserve.

The federal government initially gave the green light for the site to be used for gaming at the beginning of 2025 but later reconsidered whether the property met the requirements for restored lands.

After a lengthy review, the department flipped its position at the end of July, finding Scotts Valley had not established the “significant historical connection” to the property that is required for gaming.

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