Koi Nation’s Sonoma Casino Plans Suffer Another Setback

The Koi Nation of Northern California’s hopes for a high-profile casino development in Sonoma County have come crashing down after a federal judge stripped its 68-acre parcel in the Shiloh neighborhood of its trust status. This ruling puts an immediate stop to the tribe’s ambitions to develop a $600-million resort casino, at least for the foreseeable future.

The Project Remains Mired in Disagreements

Judge Rita F. Lin’s September 22 order cemented her earlier preliminary ruling in favor of the Federated Indians of Graton Rancheria (FIGR), who own a large casino near Rohnert Park. Lin motivated her decision by pointing out that the US Department of the Interior had failed to properly consult with the Graton Rancheria and other tribes about the cultural and historical significance of the land before placing it into trust for the Koi in 2022. 

“FIGR has met its burden for the requested injunctive relief reversing the land-into-trust transaction.”

Judge Rita F. Lin

This judgment marks a significant legal victory for Graton Rancheria, which has opposed Koi Nation’s plans since their inception. The Graton leadership argued that the Shiloh parcel lies within its ancestral territory and that the federal regulators had circumvented their right to object to the project by fast-tracking the Koi application without adequate consultation.

The ruling is a crushing setback for the Koi Nation’s expansion efforts. The tribe purchased the land for $12.3 million in 2021 with plans to build a 400-room hotel, a gaming floor with more than 2,700 slot machines and 100 table games, and a large entertainment and dining complex. The tribe described the project as essential to its economic self-sufficiency, promising to bolster employment and attract tourists.

Tribal Gaming Expansion Faces Rising Challenges

Despite the Koi Nation’s promises of economic prosperity for the region, the project has faced intense opposition. Residents of the rural Shiloh neighborhood repeatedly expressed their concerns about traffic congestion, noise, and water usage. Sonoma County supervisors, the Windsor Town Council, several state and federal lawmakers, and Governor Gavin Newsom all went on record opposing the development. 

This decision could reflect broader policy shifts in the USA as the current administration opposes broad tribal gaming expansions. Secretary of the Interior Doug Burgum has historically favored a more restrictive approach to the current “hub-and-spoke” online gambling model, while securing land into trust or off-reservation gaming opportunities have become increasingly challenging.

Graton Rancheria, which recently launched a $1 billion expansion of its own resort and casino, celebrated the ruling as a reaffirmation of tribal sovereignty. While the Shiloh parcel remains in Koi ownership, its use as a gaming site remains prohibited. The tribe has confirmed its intentions to appeal this decision. However, the process could take years, with no guarantee of success.