Judge Denies Scotts Valley Bid to Revive Vallejo Casino, Calls $10M in Losses 'Self-Inflicted'

U.S. District Judge Trevor McFadden denied the Scotts Valley Band of Pomo Indians' request for a preliminary injunction against the Interior Department's July 31 Indian Lands Opinion, which found the band lacks a significant historical connection to Vallejo. The judge said the tribe had not shown it was likely to win on any claim, and gaming on the Vallejo property remains prohibited.

McFadden also described the tribe's claimed financial harm as self-inflicted. Scotts Valley put more than $10 million into the project after Interior's favorable January 2025 ruling, including a temporary Class II preview casino that opened July 24, 2026 in modular buildings, even though the court had warned it not to lean on that early win. The tribe has said the temporary site costs it about $235,000 a month to maintain.

The lawsuit continues. Tribal chairman Shawn Davis says the band remains confident in its case, while the Yocha Dehe and Kletsel Dehe Wintun Nations, who oppose the project, welcomed the ruling. The $700 million casino the tribe has promoted never broke ground.