Federal Judge Denies Scotts Valley Injunction, Keeps Vallejo Casino Plan Blocked

October 2, 2026

The Scotts Valley Band of Pomo Indians suffered a major court setback this week after a federal judge denied the tribe's request for a preliminary injunction challenging the U.S. Department of the Interior's rejection of gaming eligibility for its proposed Vallejo casino.

U.S. District Judge Trevor N. McFadden issued the memorandum order September 30 in the U.S. District Court for the District of Columbia. The Band sought an injunction that would vacate Interior's latest gaming eligibility decision and restore the agency's earlier determination approving gaming on the Vallejo property.

The ruling does not end Scotts Valley's underlying lawsuit, but it leaves Interior's determination that the Vallejo parcel is ineligible for gaming in place while the legal challenge continues.

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Judge Rejects Scotts Valley Arguments

Judge McFadden concluded that Scotts Valley failed to satisfy all four factors required for preliminary relief.

The court found the Band had not shown a likelihood of success on any of its claims, had not demonstrated irreparable harm, and had not established that either the balance of equities or public interest favored granting an injunction.

Of particular importance to the casino project, the judge rejected the Band's contention that Interior's latest gaming decision violated an earlier federal court remand.

That earlier ruling faulted Interior's application of its regulation requiring restored tribes to demonstrate a significant historical connection to proposed gaming land. The court specifically criticized the agency for disregarding the federal government's role in weakening Scotts Valley's historical connections and the remedial nature of the restored-lands exception.

But Judge McFadden found Scotts Valley had not shown that Interior's latest decision defied that earlier ruling. He also determined that the Band was unlikely to succeed on claims that Interior's reconsideration was arbitrary and capricious, disregarded Scotts Valley's reliance interests or violated the Band's due-process rights.

Gaming Eligibility Remains Blocked

At the center of the dispute is whether the Vallejo property qualifies for gaming under the restored-lands exception of the Indian Gaming Regulatory Act.

Interior rejected Scotts Valley's application in 2019, but a federal court later vacated that decision and returned the issue to the agency for reconsideration. In January 2025, Interior reversed course and determined the parcel qualified as restored lands. The property was subsequently taken into federal trust and declared eligible for gaming.

Neighboring tribes challenged that determination, while Interior later reopened the matter to consider additional evidence. Following its reconsideration, the agency again determined that the Vallejo land was not eligible for gaming, leading Scotts Valley to file its current lawsuit.

Court Finds No Irreparable Harm

The court also rejected Scotts Valley's claim that leaving Interior's decision in effect during the litigation would cause irreparable harm.

Judge McFadden found that neither the Band's claimed economic losses nor its asserted sovereign harm cleared the high legal threshold necessary for an injunction. He also concluded that the balance of equities and public interest weighed against preliminary relief.

Casino Fight Continues

The September 30 decision is a significant setback, but it is not a final judgment against Scotts Valley.

The Vallejo parcel remains in federal trust, while Interior's determination that it does not qualify for gaming under the restored-lands exception remains in effect.

For now, Scotts Valley has failed to obtain the immediate court intervention it sought to restore gaming eligibility, leaving its proposed Vallejo casino blocked while the larger federal court battle continues.

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