Koi Nation, Scotts Valley Casino Projects Face Critical Federal Court Battles

Two major Northern California casino proposals await federal court decisions that could determine whether the projects can move forward.

By 500 Nations, Sept. 29, 2026

Two major Northern California tribal casino projects are entering critical stages in separate federal court battles that could determine whether either development can move forward.

The Koi Nation is awaiting a decision from the Ninth Circuit Court of Appeals involving its proposed casino on the Shiloh site in Sonoma County. The 68.6-acre property is currently out of federal trust after a federal district court invalidated the 2025 trust acquisition and ordered the transaction reversed.

Meanwhile, the Scotts Valley Band of Pomo Indians is suing the U.S. Department of the Interior over its July 30 decision that the tribe's roughly 160-acre Vallejo property does not qualify for gaming under the "restored lands" exception of the Indian Gaming Regulatory Act, or IGRA. The tribe filed its challenge August 7 in federal court in Washington, D.C.

The two disputes involve different legal questions, but both have left ambitious Northern California casino projects facing uncertain futures.

Koi Nation Awaits Ninth Circuit Decision

The Koi Nation's proposed casino has faced opposition from the Federated Indians of Graton Rancheria, which challenged federal actions involving the Shiloh property.

The Department of the Interior approved the acquisition of the 68.6-acre Shiloh Parcel into federal trust on January 13, 2025 and declared the property eligible for gaming under Section 20 of IGRA.

That approval was later overturned.

U.S. District Judge Rita Lin ruled that the official who approved the transaction lacked the legal authority to approve trust acquisitions and ordered Interior to reverse the transaction. The department subsequently made its final determination removing the Shiloh Parcel from trust on March 27, 2026.

The dispute has now reached the Ninth Circuit.

During oral arguments on September 1, attorneys for Graton Rancheria, the Koi Nation and the federal government presented competing arguments involving the lawsuit, tribal sovereign immunity and judicial review. No decision was announced during the hearing.

For now, the Shiloh property remains out of trust, and the casino has not begun construction or gaming operations.

A Ninth Circuit ruling is the next major development to watch.

Scotts Valley Fights to Restore Vallejo Gaming Eligibility

The Scotts Valley Band of Pomo Indians is fighting a different federal battle over its proposed casino development in Vallejo.

Interior approved the Vallejo property in January 2025, took the land into trust and concluded that it qualified as restored lands eligible for gaming. After reconsidering the matter, however, Interior reversed course on July 30, 2026, finding that the tribe had not demonstrated the significant historical connection to the Vallejo property required for gaming under the restored-lands exception.

The reversal had immediate consequences.

The tribe had begun operating a temporary Class II gaming facility at the Vallejo property but said it was compelled to suspend gaming following Interior's July decision.

On August 7, Scotts Valley filed suit in U.S. District Court for the District of Columbia challenging Interior's decision. The tribe is seeking to have the July determination set aside and the January 2025 finding that the Vallejo property qualifies as restored lands eligible for gaming reinstated.

The tribe also sought preliminary relief that could allow the interim gaming operation to reopen while the litigation proceeds.

Two Projects, Two Different Federal Questions

Although both controversies involve federal approval

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