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Scotts Valley Band Closes Vallejo Preview Casino After Interior Department Reverses Gaming Status

Written by Amir Keller · Aug 6, 2026

Scotts Valley Band Closes Vallejo Preview Casino After Interior Department Reverses Gaming Status

Exterior view of the Preview Casino facility in Vallejo during its brief operational period

The Scotts Valley Band of Pomo Indians shut down its Preview Casino in Vallejo late on the night of August 2 into August 3 2026 after the U.S. Department of the Interior withdrew gaming eligibility for the tribe's trust parcel in the city, and operations halted immediately following receipt of the federal notice that cited an insufficient historical connection to the site.

The temporary facility had opened only recently as a way to show viability for a larger planned resort project, and it had employed more than 100 people at the time of closure, while the tribe has stated it intends to file a fresh federal lawsuit to challenge the reversal.

Background of the Preview Facility

The Preview Casino served as a short-term demonstration site meant to prove market demand and operational capacity ahead of a bigger development, and the tribe positioned the Vallejo location as a strategic expansion beyond its primary lands in Lake County, yet the Interior Department's action ended that plan when officials determined the parcel lacked the required ties to the tribe's aboriginal territory under federal gaming rules.

Those rules require documented historical connections before land taken into trust can qualify for gaming, and the reversal came after an earlier determination that had allowed the temporary operation to proceed.

Immediate Effects of the Closure

More than 100 workers received notice that shifts would end at the close of business on Sunday, August 2 2026, and the tribe coordinated with staff on final payroll and benefit transitions while security teams secured the property, and gaming machines and tables were powered down in accordance with state and federal protocols.

Local suppliers and vendors who had begun deliveries for the new operation also stopped shipments once the federal notice arrived, which left the tribe to manage inventory returns and contract adjustments in the days that followed.

Interior gaming floor of a temporary casino preview facility with slot machines and tables

Federal Decision and Legal Next Steps

The Department of the Interior's withdrawal rested on a review that found the Vallejo parcel did not meet the historical-connection standard required under the Indian Gaming Regulatory Act, and the notice arrived without prior public warning to the tribe or to city officials who had supported the project through local approvals, while the tribe responded by announcing plans to file suit in federal district court to contest the finding and to seek restoration of eligibility.

Legal observers note that similar disputes over trust-land gaming eligibility have taken years to resolve through the courts, and the Scotts Valley Band's filing will likely focus on whether the department applied consistent standards compared with earlier approvals for other California tribes.

Context of Tribal Gaming in California

California hosts more than 60 tribal casinos that generate substantial revenue for their communities and for the state through revenue-sharing agreements, yet each new site must clear both federal trust-land requirements and state compact negotiations, and the Vallejo project had reached the demonstration stage after years of land-acquisition and environmental review processes.

The Scotts Valley Band maintains its main gaming operations on lands closer to Clear Lake, and the Vallejo effort represented an attempt to reach the larger Bay Area market while still operating under the tribe's existing compact framework.

City and Regional Reactions

Vallejo city leaders had viewed the Preview Casino as an economic development opportunity that could bring jobs and tax revenue to a waterfront area still recovering from earlier industrial decline, and they expressed surprise at the sudden federal reversal even as they confirmed that local permits remained valid pending the outcome of any lawsuit.

Regional business groups that had begun discussions with the tribe about supply-chain partnerships also paused those talks, and workforce training programs tied to the casino's opening shifted focus back to other local employers.

Conclusion

The closure marks the end of the Scotts Valley Band's initial attempt to establish a gaming presence in Vallejo, yet the tribe's announced lawsuit keeps the possibility of future operations open if the courts overturn the Interior Department's determination, and the more than 100 affected employees now seek new positions while the legal process unfolds over the coming months.

Observers will watch how the case proceeds because similar eligibility disputes elsewhere in California have shaped the boundaries of tribal gaming expansion for years, and the outcome here will influence how other tribes approach trust-land acquisitions in urban corridors.