Scotts Valley Band of Pomo Indians Halts Operations at Vallejo Preview Casino After Federal Reversal

The Scotts Valley Band of Pomo Indians closed its temporary Preview Casino in Vallejo, California, immediately after the U.S. Department of the Interior withdrew gaming eligibility for the tribe's Vallejo trust parcel due to insufficient historical connection, and the small-scale Class II facility that had operated briefly while employing over 100 workers shut down late Sunday night following the federal reversal. This development unfolded in August 2026 when the department issued its final determination rejecting Class III gaming eligibility for the Scotts Valley Band's Vallejo trust land, prompting the tribe to cease all gaming activities at the preview site without delay. The facility had served as an initial step toward a much larger development, yet the eligibility withdrawal forced an abrupt end to operations that had only recently begun. Observers note that the closure came after a brief period of activity during which the casino generated employment opportunities in the local area, and the tribe has since described the department's action as unlawful while outlining plans to challenge it through legal channels. The larger $700 million resort project remains delayed according to statements from tribal representatives, though they have indicated it is not abandoned and could proceed once regulatory hurdles are addressed.

Background on the Preview Casino and Its Operations

The temporary Preview Casino represented a Class II gaming operation that relied on the trust parcel's eligibility status, and it opened to provide limited gaming options while the tribe advanced plans for a full-scale resort destination. Employment figures exceeded 100 workers during its short run, which delivered immediate economic activity in Vallejo before the federal decision took effect late Sunday night in August 2026.

Those familiar with the project point out that the preview facility functioned as a bridge between initial federal approvals and the bigger development, yet the withdrawal of eligibility for Class III gaming altered the trajectory in a matter of days. The tribe maintained that the parcel met necessary criteria based on historical ties, but the Department of the Interior determined otherwise after review.

The Federal Decision and Tribal Response

The U.S. Department of the Interior's reversal centered on findings that the Vallejo trust parcel lacked sufficient historical connection to support gaming eligibility, and this determination directly triggered the shutdown of the preview operation. Tribal leaders responded by labeling the decision unlawful and announcing intent to file a new federal lawsuit under the Administrative Procedure Act to contest the outcome.

Statements from the Scotts Valley Band emphasize that legal action will seek to restore eligibility status, while the tribe continues to pursue the broader resort vision valued at approximately $700 million. The preview casino's closure marks a temporary setback rather than a permanent halt, according to those tracking the matter, and the larger project could advance once the eligibility question is resolved through the courts.

Employment and Local Economic Effects

More than 100 workers lost positions when the Preview Casino closed late Sunday night, and this development affected individuals who had been part of the brief operational phase in Vallejo. The facility's short existence had nonetheless contributed to local employment during a period when the tribe positioned the site as a stepping stone toward expanded gaming infrastructure.

Regional observers have noted that such temporary operations often serve as testing grounds for larger investments, yet the federal reversal compressed the timeline and forced an immediate end to staffing and revenue generation at the Class II venue. The tribe has not disclosed specific figures on total revenue during the preview period, focusing instead on the path forward through litigation and renewed federal engagement.

Future Plans for the $700 Million Resort

Despite the delay caused by the eligibility withdrawal, the Scotts Valley Band has confirmed that the $700 million resort project in Vallejo is not abandoned, and planning efforts continue alongside the planned lawsuit. The preview casino had been intended to generate early momentum and community support, yet the August 2026 federal action shifted priorities toward legal resolution first.

Those involved in the development indicate that the tribe will explore all available avenues to reinstate gaming eligibility on the trust parcel, and the outcome of the Administrative Procedure Act challenge could determine whether the full resort moves ahead on its original schedule or requires adjustments. The story remains fluid as the tribe prepares its next steps in federal court.

Conclusion

The closure of the Scotts Valley Band of Pomo Indians' Preview Casino illustrates the direct impact of federal eligibility determinations on tribal gaming ventures, and the tribe's decision to pursue litigation under the Administrative Procedure Act sets the stage for further developments. With the $700 million resort project on hold pending resolution, the events of August 2026 highlight the interplay between regulatory oversight and tribal economic initiatives in California. The preview facility's brief operation provided short-term employment before its late Sunday night shutdown, leaving the larger vision dependent on the outcome of upcoming legal proceedings.