U.S. judge strips tribal land of trust status, blocking Northern California's Koi Nation casino plan

A U.S. federal judge has ordered that a 68-acre parcel of land held in trust for the Koi Nation of Northern California be removed from federal trust status, halting the tribe’s plans to build a casino in Sonoma County.

The September 22 ruling by Judge Rita F. Lin finalizes an earlier decision and marks a major legal victory for the Federated Indians of Graton Rancheria (FIGR), operators of the nearby Graton Resort & Casino in Rohnert Park, the largest gaming complex in the San Francisco Bay Area.

The Koi Nation, a small band of Pomo Indians, had sought to develop a 400-room hotel and 530,000-square-foot casino featuring 2,750 gaming devices and more than 100 table games on the site near the town of Windsor. The tribe acquired the parcel in 2021 for $12.3 million.

The Graton Rancheria sued the U.S. Department of the Interior twice, alleging that federal officials failed to consult on cultural resources and improperly accepted the Koi’s historical ties to the land. Lin agreed, finding that Interior had “railroaded the (Graton) tribe at every turn” in its approval process.

The judge rejected government attorneys’ argument that the land could remain in trust while the Koi pursued an appeal, despite the tribe’s written promise not to “undertake any casino development” during that period. Lin wrote that “FIGR has met its burden for the requested injunctive relief reversing the land-into-trust transaction.”

The Koi Nation called the ruling “deeply disappointing,” adding: “The Koi Nation has fought for generations for a land base upon which to secure a future for the Koi people.” The tribe vowed to appeal to the Ninth Circuit, saying it remained “confident that justice will prevail,” in a written statement to The Press Democrat.

The tribe defended the federal government’s original decision to take the land into trust as “thorough, meticulous, and lawful in every respect,” citing “volumes of technical, scientific, and historical data” behind it.

The project had faced broad political and community resistance. Residents of the Shiloh neighborhood, where the land is located, warned of increased traffic, noise, water use, crime, and evacuation dangers in the event of wildfire. Local and state officials, including Governor Gavin Newsom, joined in opposition.

The Koi retain ownership of the land but cannot develop a casino on it unless the ruling is overturned on appeal.