Scotts Valley Band Closes Preview Casino in Vallejo After Federal Reversal on Trust Land Eligibility

The Scotts Valley Band of Pomo Indians ended operations at its temporary Preview Casino in Vallejo late Sunday night in August 2026, after the U.S. Department of the Interior withdrew gaming eligibility for the tribe's trust parcel, and the small Class II facility had employed more than 100 workers during its brief run while the larger resort project remains delayed though not canceled.

Federal officials cited insufficient historical connection to the land as the basis for reversing the earlier determination that had allowed the preview site to open, and the tribe responded by labeling the move unlawful while announcing plans to challenge it through a new lawsuit under the Administrative Procedure Act.

Details of the Federal Decision and Immediate Shutdown

The Department of the Interior's action came after a review that determined the Vallejo parcel lacked the required ties to the tribe's history, which removed the foundation for gaming activities even at the limited Class II level that had been in place for several weeks, and the closure followed directly once the tribe received formal notice of the reversal.

Workers at the facility received word of the shutdown on the same evening operations stopped, with the site transitioning from active gaming to closure protocols within hours, and tribal leadership coordinated the wind-down to comply with the new federal stance while preserving records for the upcoming legal filing.

Tribe's Position and Planned Legal Response

The Scotts Valley Band described the eligibility withdrawal as inconsistent with prior federal assessments of the same parcel, and representatives stated the decision would face scrutiny in court through an Administrative Procedure Act claim that targets the process used by the Department of the Interior, while the tribe emphasized that the $700 million resort development on the site has only been postponed rather than abandoned.

Legal preparations began immediately after the announcement, with the tribe assembling documentation to support its argument that the reversal lacked proper basis under existing regulations, and observers familiar with similar cases noted that such challenges often focus on whether the agency followed required procedures when changing a prior eligibility finding.

Background on the Preview Casino and Larger Project

The temporary Preview Casino operated as a scaled-down Class II venue that offered electronic gaming options without table games, and it served as an initial step toward the full resort that tribal planners had projected would generate substantial revenue once completed, yet the federal reversal halted that progression at the earliest stage.

Construction on the main $700 million facility had already been placed on hold pending further approvals, and the preview operation was intended to provide early employment and operational experience while the larger site advanced through regulatory steps, but the August 2026 determination removed the immediate path forward for even the smaller venue.

Impact on Employment and Local Operations

More than 100 workers lost positions when the doors closed, and many had been hired specifically for the preview phase with expectations that roles would transition into the expanded resort once it opened, while the sudden end left the tribe to manage final pay and benefits in accordance with state and federal labor requirements.

Local suppliers and vendors connected to the short-lived facility also faced adjustments, since the operation had relied on regional services for maintenance, food service, and security during its run, and the abrupt halt created ripple effects that extended beyond the tribe's direct payroll.

Next Steps for teh Scotts Valley Band

The tribe continues to pursue federal recognition pathways and land-related approvals that could support future gaming eligibility, and officials have indicated they will explore additional legal avenues beyond the Administrative Procedure Act suit to address the eligibility reversal, while maintaining that the overall development vision for the Vallejo site has not changed despite the current setback.

Conclusion

The closure of the Preview Casino marks a clear turning point for the Scotts Valley Band's Vallejo project in August 2026, driven by the Department of the Interior's decision on historical connection and eligibility, yet the tribe's commitment to litigation and its larger resort plans shows the effort is shifting rather than ending, and the outcome of the planned lawsuit will determine how quickly operations might resume at any scale.