DOI Reopens Review of $700M Vallejo Casino Approval

The Department of the Interior has reopened its review of the tribe’s gaming eligibility after concluding that its earlier approval may have relied on a flawed legal interpretation. The decision introduces significant uncertainty for the 160-acre mixed-use development planned at the junction of I-80 and Highway 37, a strategic but contested location in Solano County. In a letter to Tribal Chairman Shawn Davis, the agency advised that the tribe should not rely on the prior determination as it reassesses whether the Vallejo site meets IGRA’s restored-lands standards.

The reconsideration follows new submissions that question the tribe’s historical and temporal connection to the land, a key requirement under IGRA. The Yocha Dehe Wintun Nation, which asserts ancestral ties to the region, has welcomed the reassessment, arguing that Scotts Valley lacks the documented historic connection necessary for gaming eligibility. Conflicting evidence regarding the presence and activities of ancestor Chief Shuk Augustine has emerged as a focal point in the review.

A recent ruling by U.S. District Judge Trevor McFadden vacated Interior’s earlier rescission on procedural grounds but confirmed the agency’s authority to continue reconsideration with proper due process. The case parallels the Koi Nation setback in Sonoma County, where judicial intervention highlighted deficiencies in federal land-into-trust analysis and pushed Interior toward more cautious evaluation.

While the Vallejo land remains in trust, eligibility for gaming is now in question. Possible outcomes include reaffirmation with conditions or a full reversal, which could limit the project to non-gaming uses. The decision is expected to shape future tribal gaming reviews across California.