Federal Judge Denies Scotts Valley Bid to Restore Vallejo Casino Eligibility

WASHINGTON – A federal judge has denied Scotts Valley Band of Pomo Indians’ request to restore gaming eligibility for its Vallejo, California, casino site. The ruling keeps the Interior Department’s July decision in effect while the tribe’s underlying lawsuit continues.

U.S. District Judge Trevor McFadden denied the tribe’s motion for a preliminary injunction on Sept. 30. Scotts Valley had sought to suspend Interior’s reconsideration decision and restore a January 2025 determination that had allowed gaming on the approximately 160-acre parcel.

The latest ruling follows the Interior Department’s reversal of gaming approval in July, which resulted in Scotts Valley suspending operations at a temporary preview casino it had opened days earlier.

Judge Finds Tribe Unlikely to Succeed

McFadden concluded that Scotts Valley had not met the requirements for preliminary relief, including demonstrating a likelihood of success on its claims or irreparable harm. The judge also found that the balance of equities and public interest weighed against granting the injunction.

“Scotts Valley has not shown likelihood of success on any of its claims.”

Trevor McFadden
U.S. District Judge

The court considered arguments that Interior had failed to follow an earlier remand order, acted arbitrarily during reconsideration, disregarded the tribe’s reliance interests and violated due-process protections. McFadden rejected those arguments for purposes of the preliminary-injunction request.

Scotts Valley also cited economic and sovereign harm, including substantial spending associated with its gaming plans. Court records indicate the tribe had committed about $10 million toward developing gaming operations at the property before Interior issued its latest determination.

Interior Decision Keeps Vallejo Gaming Ineligible

The dispute centers on whether the Vallejo property qualifies for the restored-lands exception under the Indian Gaming Regulatory Act. Interior initially approved the site for gaming in January 2025, triggering legal challenges from other California tribes that disputed Scotts Valley’s historical connection to the area.

After reconsidering the matter, Interior concluded in its July 30 gaming determination that Scotts Valley had demonstrated modern and temporal connections to the property but had not established the required significant historical connection. The department therefore found that the parcel did not qualify as restored lands for gaming purposes.

The decision disrupted plans for a proposed $700 million casino development that would operate around the clock and include housing, tribal administration facilities, parking and a biological preserve. Scotts Valley had also opened a smaller Class II preview casino on the property in July before suspending gaming following Interior’s reversal.

Underlying Lawsuit Will Continue

The denial of the injunction does not end Scotts Valley’s legal challenge. Tribal Chairman Shawn Davis said the Band remains confident that the law and administrative record support restoration of its gaming eligibility and intends to continue pursuing the case.

Several neighboring tribes, including the Yocha Dehe Wintun Nation, have opposed the Vallejo project and argued that Scotts Valley lacks the historical connection required for gaming eligibility. Yocha Dehe welcomed the latest decision and continues to assert that the area is part of Patwin ancestral territory.

The case will now proceed without the temporary relief Scotts Valley requested. Unless the tribe obtains a later ruling overturning Interior’s determination, gaming at the Vallejo property remains prohibited under the July decision.

RELATED TOPICS: Regulation