California Tribe's $700M Casino Dream Crashes After Federal Reversal The Scotts Valley Band of Pomo Indians' one-week-old preview casino in Vallejo was forced to close after the U.S. Department of the Interior revoked approval for its $700 million resort project. The decision raises questions about tribal land rights and gaming regulations amid growing competition in California's lucrative casino industry. A California tribe lost its casino dreams after the federal government abruptly reversed its decision on a major gambling project. The Scotts Valley Band of Pomo Indians was forced to shut down its newly opened preview casino in Vallejo just one week after launching when the U.S. Department of the Interior revoked approval for the tribe's ambitious $700 million resort plan. The temporary casino, located in modular buildings near Columbus Parkway, celebrated its grand opening on July 25 but was shuttered by August 1 after federal regulators deemed the tribe lacked sufficient historical ties to the land. The decision dashed the tribe's hopes of transforming the 160-acre site near Interstate 80 into a sprawling entertainment complex featuring an eight-story casino, restaurants, bars, a ballroom, a parking garage, two dozen homes, tribal offices, and a 45-acre biological preserve.Assistant Secretary for Indian Affairs William H. Kirkland III ruled the Vallejo property did not qualify as restored tribal land, stripping the project of legal legitimacy under the Indian Gaming Regulatory Act. The Interior Department's reversal stunned the Lake County-based tribe, which had secured preliminary approvals and invested significant resources into the project. Opponents, including the Yocha Dehe Wintun Nation, celebrated the ruling, arguing the Vallejo site sits within Patwin ancestral territory.Tribal Chairman Shawn Davis vowed to challenge the decision in federal court, arguing the administrative record supports the tribe's gaming eligibility. The federal government had initially approved the site for gaming in early 2025 before reconsidering its stance. The Scotts Valley Band had opened the preview casino just days before the reversal, offering invited guests a taste of what was poised to become a major Bay Area gaming destination.The shutdown underscores the growing tensions within California's tribal gaming industry, where land rights, sovereignty, and billions in casino revenue are increasingly contested. The state's gaming compact with the Fort Mojave Indian Tribe, signed by Governor Gavin Newsom, has further fueled debate. The agreement allows the tribe to operate two casinos with up to 1,200 slot machines in San Bernardino County without requiring revenue-sharing payments to the state-a move critics say forfeits billions in potential annual revenue.Kyle Kirkland, president of the California Gaming Association, warned that the state is leaving significant funds uncollected, noting other states typically secure 10% to 50% of slot revenue. Meanwhile, tribal gaming continues to thrive, with $46.2 billion in gross gaming revenue recorded last year. For the Scotts Valley Band, the $700 million casino resort dream remains on hold, but the tribe insists the fight is far from over