Feds: California Tribe Was Warned Before Opening Casino That Lasted Just Six Days
The federal government says a California tribe that opened a casino only to shut it six days later had been repeatedly warned that the legal basis for gaming on the property was under reconsideration. On Friday, a Department of Justice attorney told a federal judge that the Scotts Valley Band of Po…
The federal government says a California tribe that opened a casino only to shut it six days later had been repeatedly warned that the legal basis for gaming on the property was under reconsideration. A digital rendering of the Scotts Valley Tribe’s proposed $700 million casino resort and hotel for Vallejo, Calif. The casino may never be built after the Interior determined the tribe is not eligible for gaming on the parcel of land. (Image: Scotts Valley Band of Pomo Indians) On Friday, a Department of Justice attorney told a federal judge that the Scotts Valley Band of Pomo Indians knew the Interior Department could reverse an earlier determination that its Vallejo land was eligible for gaming. Despite those warnings, the tribe opened its “Preview Casino” July 24, offering Class II gaming from modular buildings. Six days later, Interior determined that the land did not qualify for gaming under the Indian Gaming Regulatory Act (IGRA), prompting the tribe to close the operation. Tribe Seeks Injunction The arguments came as Scotts Valley asked US District Judge Trevor McFadden to issue a preliminary injunction blocking Interior’s July 30 decision. The ruling also threatens the tribe’s much larger ambition for the site: a proposed $700 million casino resort and hotel. IGRA generally prohibits gaming on land taken into trust after 1988, subject to several exceptions. Scotts Valley claims its property qualifies under an exception for land acquired as part of the restoration of a federally recognized tribe. Interior determined that Scotts Valley satisfied requirements relating to its modern connection to the area and the timing of the land acquisition, but failed to demonstrate a sufficiently significant historical connection. DOJ attorney Amber Dutton-Bynum argued Friday that Scotts Valley could not demonstrate the irreparable harm necessary for an injunction because it knowingly invested in the Preview Casino while its gaming eligibility remained uncertain, as reported by Law360. She also argued that the buildings could be put to other uses if gaming remains prohibited. Patrick Bergin, an attorney for Scotts Valley, rejected that suggestion, arguing it would be difficult to simply repurpose a development specifically studied and intended for gaming into something such as a car dealership. Bergin also said the tribe twice informed Interior that it was preparing to open the Preview Casino and provided updates without being told to halt the project. Long-Running Dispute The dispute dates back to January 2025, when the Biden administration determined that the Vallejo parcel was eligible for gaming. Interior temporarily rescinded that decision two months later after newly appointed Secretary Doug Burgum raised concerns about whether evidence of the tribe’s historical connection to the land had been adequately considered. Scotts Valley sued, and in October 2025, McFadden ruled that Interior violated the tribe’s due process rights by rescinding the determination without first providing notice and an opportunity to respond. However, the judge allowed Interior to continue reconsidering the underlying gaming question. Scotts Valley has alleged that the reversal followed a political pressure campaign by the Yocha Dehe Wintun Nation, which opposes the Vallejo casino project. McFadden appeared skeptical Friday that Scotts Valley had cleared the high threshold required to demonstrate irreparable harm. He has yet to rule on the tribe’s request for an injunction. The post Feds: California Tribe Was Warned Before Opening Casino That Lasted Just Six Days appeared first on Casino.org.