The Scotts Valley Band of Pomo Indians has filed a lawsuit against the U.S. Department of the Interior after federal officials reversed their approval for a $700 million casino project, forcing the tribe to suspend gambling operations just one week after its invitation-only preview opened.

The lawsuit, filed on August 7, seeks to overturn the Department's July 30 ruling and reinstate the tribe's gaming plans. The tribe alleges the Interior Department's decision was "arbitrary, capricious, contrary to law, unsupported by the administrative record," and in violation of the Indian Gaming Regulatory Act and previous court rulings.

The temporary casino, located in modular buildings near Columbus Parkway in Vallejo, began operations on July 25. However, the federal action on August 1 halted its operations. The Department of Interior's Assistant Secretary for Indian Affairs, William H. Kirkland III, determined that the Vallejo property did not qualify as "restored tribal lands" because the tribe had not demonstrated the required historical connection to the land for gaming purposes.

This decision effectively put the brakes on the tribe's extensive development plans. The project envisioned a 160-acre site near Interstate 80 and Columbus Parkway, featuring an eight-story casino, multiple restaurants and bars, a ballroom, a parking garage, two dozen homes, tribal offices, and a 45-acre biological preserve.

The federal government had initially granted approval for the site to be used for gaming by early 2025. However, following a comprehensive review, the department reversed its position, concluding that the Scotts Valley Band of Pomo Indians failed to establish the necessary "significant historical connection" to the property.