A makeshift casino set up on a dusty patch of land in Vallejo has closed after just one week following a ruling that the land is ineligible for gaming, the city of Vallejo said.
It’s the latest in a series of blows to the Scotts Valley Band of Pomo Indians’ plans to build a sprawling $700 million casino resort near the intersection of State Route 37 and Interstate 80 in Vallejo. The Scotts Valley tribe acquired the 160-acre parcel in 2025 via a trust — the first time the tribe has held land in decades.
But in a ruling Friday, the U.S. Department of the Interior determined the Scotts Valley tribe’s newly acquired parcel was ineligible for gaming, forcing them to close shop at the “preview casino,” as it was known. The decision was a reversal from the department’s previous approval for gaming on the site in 2025.
“The administrative record overwhelmingly supports the Tribe’s gaming eligibility,” said Shawn Davis, chairman of the Scotts Valley tribe, after the department’s decision. “We will move quickly to challenge the decision in federal court.”
The tribe has challenged previous Department of the Interior decisions in court.
Vallejo loses potential revenue
The preview casino opened at the end of July with a handful of gaming machines in modular trailers — a major step forward for the project, which has been mired in delays and lawsuits from nearby tribes since plans were first drawn up more than 10 years ago.
The city of Vallejo stood to make $402,000 annually from the temporary casino, according to a memorandum of understanding between the city and Scotts Valley tribe passed by the City Council in April. The MOU included police and utility services, allowing the casino to get started. It is not currently clear whether the MOU will remain in place or not.
“We were hopeful this could be an economic benefit to the city,” said Vallejo Vice Mayor Diosdado “JR” Matulac, expressing disappointment in the department’s decision. “Scotts Valley tribe was willing to provide community benefits and support the city.”
The city does not have any decision-making power when it comes to tribal land.
“We were hopeful this could be an economic benefit to the city. Scotts Valley tribe was willing to provide community benefits and support the city.”
Vallejo Vice Mayor Diosdado “JR” Matulac
“We can only wait out the process here,” said Matulac, anticipating a spate of dueling lawsuits.
Vallejo’s loss is a relief for nearby cities, where casinos contribute a hefty sum to general funds. Only a few miles north of the Scotts Valley tribe’s parcel is a wildly popular 24-hour cardroom in American Canyon called the Napa Valley Casino, where an entry fee funnels $200,000 to the city every year.
“The casino is an important business that drives a lot of revenue,” said Mark Joseph, an American Canyon city councilmember who was pleased with the Department of the Interior’s ruling. “I don’t want to see it hurt.”
Ruling benefits nearby casinos
The nearby Lytton Band of Pomo Indians and Yocha Dehe Wintun Nation would agree. The tribes have owned and operated San Pablo Lytton Casino and Cache Creek Casino Resort, respectively, for decades, bringing millions every year to the city of San Pablo and Yolo County. Both sued Vallejo for signing the MOU.
Andy Mejia, chairperson of the Lytton Band of Pomo Indians, which owns San Pablo Lytton Casino a few miles south of Vallejo, wrote in a letter to the Vallejo City Council that if the MOU was signed, the Scotts Valley tribe’s project would “inflict serious economic harm on nearby tribes, which operate successful gaming enterprises.”
The letter also references a Department of the Interior statement that the Scotts Valley tribe’s historical ties to the parcel are questionable.
Mejia estimated that a rival gambling hub could mean a 21% loss of Lytton Casino’s annual take, which currently supports 59% of San Pablo’s General Fund, according to the city’s website.
Several tribes, including Yocha Dehe, filed lawsuits against the Department of the Interior following its 2025 decision approving the Scotts Valley tribe’s right to game on their land.