Scotts Valley Band Moves Toward New Federal Lawsuit After Latest Casino Approval Revocation
August 11, 2026 - Vallejo, CA
The Scotts Valley Band of Pomo Indians is preparing to file a new federal lawsuit after the U.S. Department of the Interior issued a fresh reversal of the tribe's gaming eligibility determination, abruptly halting progress on its Vallejo casino project and forcing the closure of its preview gaming facility.
The decision marks the second time in two years that Interior has withdrawn approval for the tribe's proposed trust acquisition and gaming authorization. Tribal leaders say the latest action is "legally indefensible" and contradicts both the administrative record and a prior federal court ruling in the tribe's favor.
$3,000 Casino Welcome Bonus!A Legal Battle Years in the Making
The tribe previously sued the federal government in 2025 after Interior rescinded its earlier approval of the Vallejo parcel. That case, Scotts Valley Band of Pomo Indians v. Burgum, resulted in an October 2025 ruling by U.S. District Judge Trevor McFadden, who found that Interior's rescission constituted final agency action and that the tribe's due-process rights had been violated.
The ruling was widely viewed as a significant win for the tribe, reinforcing its argument that Interior's shifting interpretations of eligibility criteria were arbitrary and procedurally flawed.
Interior's August 2026 Reversal
On August 2-3, 2026, Interior issued a new determination withdrawing gaming eligibility for the Vallejo site. The agency's letter cited "insufficient historical connection" and "inconsistencies in the record," despite the tribe's repeated submissions of documentation supporting its land-restoration claim.
The reversal immediately halted operations at the tribe's preview casino, which had been functioning under temporary authorization while the full project awaited final federal approval.
Chairman Shawn Davis called the decision "a clear repeat of the same unlawful reasoning the court already rejected," adding that the tribe would "move quickly to challenge this reversal in federal court."
New Litigation Imminent
According to tribal officials, the Scotts Valley Band is preparing to file a new lawsuit in the U.S. District Court for the District of Columbia. The forthcoming complaint is expected to argue:
- Interior's latest reversal violates the Administrative Procedure Act
- The agency ignored binding findings from the 2025 federal ruling
- The decision is inconsistent with the tribe's documented historical record
- The sudden withdrawal of gaming eligibility caused measurable economic harm
Legal analysts say the tribe's position is strengthened by the prior ruling, which criticized Interior's handling of the case and affirmed the tribe's procedural rights.
Impact on the Casino Project
The Vallejo casino-planned as a major regional entertainment destination-now faces renewed uncertainty. Construction timelines, financing commitments, and local partnership agreements are all expected to be affected by the delay.
The tribe says it remains committed to the project and will continue pursuing all available legal remedies.
"This is not the end of the Vallejo casino," Davis said. "It's another step in a long fight, and we're prepared for it."
