.Federal Review Puts Vallejo Casino Project Back in Doubt

Published in cooperation between CardPlayer.com and Good Times

The long-running plan for a new casino in Vallejo faces fresh uncertainty after a recent move by the United States Department of the Interior. A letter sent to the Scotts Valley Band of Pomo Indians signaled that the tribe’s earlier approval may rest on a legal mistake. The tribe had counted on that approval for contracts and planning, so the message hit hard. People living in the region tracked the project over time, observing each shift in the narrative and feeling interest rise. The latest federal directive forces a second pause for all parties, and everyone is left speculating about how the subsequent round will develop.

The Scotts Valley Band hopes to build on a 160-acre site near the meeting point of Interstate 80 and Highway 37. The tribe wants to create a $700-million project that includes a 24-hour casino, tribal offices, single-family homes, a large parking structure, and a 45-acre biological preserve. Supporters claim the site may create jobs and stir fresh activity in the area. The proposal, if approved, would bring more traffic into town and boost spending, and conversations so far with local officials have already indicated this outcome.

As the Vallejo project moves through each new round of review, some people look beyond local plans for opportunities like an offshore casino. These sites follow international rules, hold reputable global gambling licenses and cater to players from across the United States. They offer thousands of games, generous bonuses and easy payment options. With access that stays steady no matter where someone lives, they show how different the online space can feel while local projects wait for clear decisions.

The tribe began the process almost 10 years ago. Back in 2016, they asked the Department of the Interior to take the Vallejo site into trust and to confirm whether the land could host gaming under the Indian Gaming Regulatory Act. That act sets rules for when a tribe can open a casino on land taken into trust by the federal government. 

In general, lands taken into trust after 1988 cannot be used for gaming unless they meet certain exceptions. One of those exceptions involves restored recognition. If a tribe once lost recognition and later regained it, the land connected to that renewed status may qualify for gaming.

This is where the argument began and where it continues today. Opposing tribes say the Vallejo plot does not meet the criteria for restored land. In their view, the Scotts Valley Band doesn’t have a strong enough heritage link to that location, and they point out that the first approval was based on a courtroom slip.

The Department of the Interior agreed with that perspective back in 2019. Because the agency felt the tribe’s ties to the land weren’t strong enough, unlike the Amah Mutsun Tribe and other tribes, it refused the request.

September 2022 saw a federal court undo the previous decision. The court heard that the agency broke its own guidelines when it reached the 2019 decision, the judge said. Judicial orders require the department to give the matter another look. It’s a hard-won success for the tribe, which revived the project’s momentum.

In January this year, the department granted trust status and acknowledged that the site may be eligible for gaming thanks to the restored lands exception. This was the very first clear green light the tribe had ever seen. The Scotts Valley Band put the contracts in place, funneled the required money and then started the first phase of a big plan that had been on hold for a long time.

The whole picture flipped in March 2025. The approval was suddenly rescinded by the new administration. It noted that the study lacks sufficient evidence. This created renewed doubt and led the tribe to claim that the federal agency acted without giving them a fair chance to respond.

In October 2025, a judge backed the tribe’s stance on the issue. The court said the department had not given proper notice before taking away the January approval. Though the judgment left the approval untouched, it compelled the agency to start the assessment over and stick to the complete set of rules. This created a narrow win for the tribe, since the review could still end with a denial, but had to be handled the right way.

The letter sent on or around Dec. 3 signaled the next stage. The department told the Scotts Valley Band that the original approval might contain a legal error related to questions about gaming eligibility. It also said the agency would move quickly to finish the new review. The letter explained that the agency must follow the steps set out by the court to ensure fair treatment. It confirmed that the earlier approval cannot be relied upon until the new review is complete.

For the tribe, this is another emotional turn, as leaders who have overcome many hurdles still trust that the January 2025 green light will hold and want the agency to stand by its decision, while neighboring tribes, including the Yocha Dehe Wintun Nation, United Auburn Indian Community and Lytton Rancheria, argue the site does not meet federal requirements, fear a Vallejo casino will siphon patrons from their venues, and say the Scotts Valley Band’s legal record does not firmly link them to the property.

Now, all eyes are on Vallejo. Some anticipate the chance of fresh activity downtown, arguing the development may lift retail sales across the whole county. On the other hand, there are concerns raised about the added cars, the way the area might be developed and the potential environmental fallout. The planned biological preserve is meant to ease some of those concerns, like reconnecting with the land, yet the full plan has not reached a point where construction can begin.

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