Vallejo Preview Casino Closes Abruptly After Interior Department Revokes Gaming Eligibility

The Scotts Valley Band of Pomo Indians shut down its temporary Preview Casino in Vallejo, California, right after the U.S. Department of the Interior withdrew gaming eligibility for the tribe's trust parcel. Officials cited insufficient historical connection to the site as the reason for the reversal, and the small-scale operation that had opened only weeks earlier to test viability for a larger resort project stopped all activity immediately. The closure took place in August 2026 and left more than 100 employees without work. The facility had served as a short-term demonstration site meant to show operational capacity ahead of a bigger development plan, yet federal action ended that effort before it could expand. Tribal leaders described the withdrawal as inconsistent with earlier agency findings and with a 2025 federal court ruling that had addressed similar land and eligibility questions.

Background on the Trust Parcel and Initial Approval

The trust parcel in Vallejo had received preliminary gaming eligibility determinations in prior years, which allowed the tribe to move forward with the preview operation. Those earlier determinations rested on historical and ancestral ties that the Department of the Interior had once accepted. When the agency reversed course, it stated that documentation failed to establish the required connection under current standards, prompting the sudden loss of eligibility.

Because the preview casino depended entirely on that eligibility status, operations could not continue once the withdrawal became effective. The tribe had positioned the modest facility as a proof-of-concept step, with plans to scale up once performance data and regulatory clearance aligned. Instead, the reversal forced an immediate halt, and the site went dark within days of teh announcement.

Impact on Employees and Local Operations

More than 100 workers received notice of the shutdown as soon as the federal decision arrived. Many had been hired locally to staff the preview location, and the abrupt end left them seeking new positions in an already competitive hospitality market. The tribe indicated that severance and transition support would be provided where possible, yet the sudden nature of the closure limited advance planning for staff and suppliers alike.

Local vendors who had begun delivering goods and services to the preview site also faced canceled contracts. Although the operation remained small, its brief run had already generated measurable economic activity in the Vallejo area, and that activity stopped the moment gaming eligibility disappeared.

Tribal Response and Legal Plans

The Scotts Valley Band of Pomo Indians stated that the Department of the Interior's action contradicted both previous eligibility findings and the 2025 federal court decision that had examined related land issues. In response, the tribe announced its intention to file a new lawsuit under the Administrative Procedure Act, arguing that the withdrawal lacked proper basis and failed to follow required procedures.

Legal observers note that challenges under the Administrative Procedure Act often focus on whether an agency considered all relevant evidence and provided adequate explanation for a change in position. The tribe's filing will seek to restore eligibility so the preview casino or a successor project can resume. Court records from the earlier 2025 ruling remain available for reference during the new case.

Regulatory Context and Next Steps

Federal recognition of gaming eligibility for trust land involves multiple layers of review, including historical, geographic, and procedural criteria. When an agency reverses an earlier determination, affected tribes typically have the option to seek judicial review. The Scotts Valley Band plans to exercise that option, and the case will likely examine the scope of the Department's authority to revisit prior approvals.

Meanwhile, the tribe continues to explore alternative sites and strategies that might satisfy eligibility requirements. No timeline for reopening has been released, and any future facility would require fresh regulatory clearance before operations could begin again.

Conclusion

The immediate closure of the Vallejo Preview Casino illustrates how quickly federal eligibility decisions can alter tribal gaming projects. With more than 100 jobs affected and a lawsuit now in preparation, the Scotts Valley Band of Pomo Indians faces a period of uncertainty while it challenges the Department of the Interior's withdrawal. The outcome of the planned Administrative Procedure Act case will determine whether the tribe regains the ability to operate on the trust parcel or must pursue development elsewhere.