Scotts Valley Band of Pomo Indians Closes Vallejo Preview Casino After Federal Reversal on Gaming Eligibility

The Scotts Valley Band of Pomo Indians closed its temporary Preview Casino in Vallejo late Sunday night after the U.S. Department of the Interior withdrew gaming eligibility for the tribe's Vallejo trust parcel, and observers note that the decision centered on insufficient historical connection to the land. The small-scale Class II facility had operated only briefly yet employed more than 100 workers, and the shutdown followed the federal reversal without delay. Those familiar with the timeline point out that the tribe received the determination in August 2026, which prompted immediate action on the floor and across all operations. The Preview Casino represented an initial step toward broader development on the trust land, and it featured standard Class II games authorized under federal guidelines while the tribe awaited further approvals. Employees received notice of the closure as gaming activities halted, and the facility transitioned to a non-operational status by the end of that Sunday. Data from the event shows the abrupt end came after months of preparation that included staffing and regulatory compliance efforts, whereas the federal action shifted the entire framework overnight.

Background on the Trust Land and Eligibility Review

The Vallejo trust parcel had undergone review by the Department of the Interior for gaming purposes, and the agency determined that the land lacked the required historical ties for continued eligibility under existing standards. This finding reversed earlier assessments that had allowed the temporary operation to proceed, and the tribe received formal notification detailing the basis for the withdrawal. People involved in the process recall that the review examined tribal connections dating back through documented history, which ultimately fell short according to the criteria applied in August 2026.

The larger $700 million resort project tied to the same parcel now faces delay, although statements from the tribe indicate it remains part of long-term plans rather than fully abandoned. Construction timelines and financing structures that depended on gaming revenue now require adjustment, and experts tracking similar cases note that such delays often extend several quarters while legal and administrative steps unfold. The temporary casino had served as a bridge to generate early activity and employment, yet its closure removes that interim revenue stream.

Tribe's Response and Planned Legal Action

The Scotts Valley Band described the federal decision as unlawful and announced intentions to file a new lawsuit challenging the reversal under the Administrative Procedure Act. Legal representatives for the tribe have begun preparing the case, which will focus on procedural aspects of the eligibility review and the evidence considered during the determination process. Court filings are expected in the coming weeks, and the action aims to restore gaming eligibility for the Vallejo parcel through judicial review.

Observers tracking tribal gaming matters point out that lawsuits under the Administrative Procedure Act typically examine whether agencies followed proper procedures and considered all relevant information. The tribe has stated it will present additional documentation supporting historical connections, and this approach aligns with previous challenges seen in other regions. Meanwhile the $700 million resort project continues in a holding pattern, with design and permitting work proceeding where possible independent of immediate gaming authorization.

Impact on Employment and Local Operations

More than 100 workers lost positions when the Preview Casino closed, and the sudden shutdown affected roles ranging from gaming floor staff to support services. Local economic data from the brief operational period shows wages and related spending contributed to the Vallejo area, whereas the closure reverses those short-term gains. The tribe has indicated support measures for affected employees while the legal process advances, and community partners have begun exploring transition resources in coordination with tribal leadership.

Operations at the facility ended in an orderly manner late Sunday, with gaming equipment secured and the premises prepared for potential future use once eligibility questions resolve. Security and maintenance teams remain on site, and the tribe continues oversight of the trust land during this period. Figures from similar closures elsewhere demonstrate that reemployment often depends on the speed of legal outcomes, and the current case timeline remains uncertain pending court scheduling.

Next Steps for the Tribe and Project

The Scotts Valley Band continues work on the broader resort vision even as the temporary casino remains shuttered, and project teams are evaluating financing options that account for the current delay. Discussions with federal officials may occur alongside the lawsuit, and the tribe has emphasized persistence in pursuing gaming development on the Vallejo parcel. Data collected during the Preview Casino's short run provided operational insights that the tribe plans to apply once eligibility is addressed through legal channels.

Conclusion

The closure of the Preview Casino marks a direct result of the Department of the Interior's August 2026 determination on gaming eligibility for the Vallejo trust land, and the tribe's planned lawsuit under the Administrative Procedure Act represents the next formal step. The $700 million resort project stands delayed yet active in planning phases, while employment impacts from the shutdown affect over 100 workers. Legal proceedings will determine whether gaming eligibility returns to the parcel, and updates on both the court case and project status are expected as the matter progresses through 2026 and beyond.