Scotts Valley Casino Project in Vallejo is Blocked by U.S. Interior Dept
Previous Approval is Reversed, Class III Gaming is Denied
The U.S. Department of the Interior has issued a final determination rejecting Class III gaming eligibility for the Scotts Valley Band's Vallejo trust land, halting the tribe's resort-casino plans.
Location & Contact
Address: 200 Columbus Parkway, Vallejo, California 94591
The Scotts Valley Band of Pomo Indians' proposed Vallejo casino project has undergone a major shift following a final determination by the U.S. Department of the Interior rejecting the tribe's bid for Class III gaming on the 128-acre trust parcel. Interior concluded the tribe did not demonstrate a significant historical connection to the Vallejo area, a requirement under IGRA's "restored lands" exception.
This ruling blocks development of a full Class III casino resort, including slot machines, table games, and hotel amenities. However, the tribe's Class II preview casino - a modular facility offering bingo-style electronic gaming - remains legal and continues operating under IGRA, which allows Class II gaming on trust land without federal gaming eligibility approval or a state compact.
The City of Vallejo's municipal services agreement with the tribe remains active, and Scotts Valley is expected to pursue legal options to challenge Interior's ruling. The future of the Vallejo casino project now depends on litigation outcomes and potential federal reconsideration.
More California Tribes Join Fight Against Scotts Valley Vallejo Casino Project as Federal Court Battle Intensifies
The legal battle over the Scotts Valley casino project took another turn this week as two California tribes joined the opposition, strengthening a growing coalition seeking to halt the proposed Vallejo gaming development.
The Scotts Valley Band operated a Class II preview casino on the Vallejo trust parcel in July 2026. The facility used modular structures and offered bingo-style electronic gaming machines regulated under IGRA. The casino was shut down after the DOI's decision to void Class III gaming on the land.
Class II gaming remains legal despite Interior's Class III denial
No slot machines or table games at the preview facility
Revenue bridge while litigation and federal review continue
Operations governed by the municipal services agreement with Vallejo
Vallejo Municipal Services Agreement
The City of Vallejo and Scotts Valley maintain an active municipal services agreement covering public safety, administrative fees, and community contributions.
Approximately $402,000 per year for municipal services
A $100,000 activation fee
At least $100,000 annually for local nonprofit support
The agreement remains valid because Class II gaming continues on the trust parcel.
Resort Plan
Artist Rendering of Scotts Valley Casino Resort
The tribe's original plan envisioned a full Class III casino resort featuring slot machines, table games, restaurants, entertainment venues, and a hotel. Interior's decision halts this development path.
Class III resort plan blocked by federal determination
Tribe expected to challenge the decision in court
Future development depends on litigation outcomes
No Class III construction underway at the site
Federal Status & Litigation
Interior's final determination states the Vallejo parcel does not qualify for Class III gaming because Scotts Valley "has not demonstrated a significant historical connection" to the area.
Class III gaming prohibited on the Vallejo parcel
Class II gaming allowed under IGRA
Trust status unchanged - land remains in federal trust
Litigation likely as the tribe pursues legal options
Opposing tribes expected to intervene to defend the decision
Location
The 128-acre Vallejo trust parcel is located near Highway 37 and Mare Island, positioned for regional access from the North Bay, Sacramento Valley, and Solano County.
The casino site is located at:
200 Columbus Parkway Vallejo, CA 94591 Near the intersection of Interstate 80 and Highway 37.
History
Pre-2010s: Scotts Valley seeks land for economic development
2016-2020: Vallejo trust acquisition pursued
2021-2024: IGRA restored-lands review begins
Jan 2025: Interior initially approves Class III eligibility
Mar 2025: Interior rescinds approval
Oct 2025: Federal judge vacates rescission, orders reconsideration
2026: Interior issues final denial of Class III gaming
2026: Class II preview casino opens on the Vallejo parcel
Frequently Asked Questions (FAQ)
Is the Vallejo casino still happening?
The Class III resort plan is halted by Interior's decision. Only Class II gaming is currently operating on the site.
Is the preview casino legal?
Yes. Class II gaming is permitted on trust land under IGRA and is not affected by the Class III denial.
Did Interior revoke trust status?
No. The land remains in federal trust; the decision is limited to Class III gaming eligibility.
Can the tribe appeal?
Yes. Scotts Valley is expected to challenge the ruling through litigation or administrative avenues.
Does Vallejo still receive payments?
Yes. The municipal services agreement remains active as long as Class II operations continue.
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News
For the latest coverage on the Scotts Valley Vallejo casino project, including Interior's Class III denial and ongoing legal developments, see our most recent news articles and updates.
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