Published in cooperation between Valuewalk and San Jose Inside
The Koi Nation’s plans to build a $600 million casino in Sonoma County have ignited a fierce debate. The small tribe, which lacks land, claims it needs the casino to survive financially and that it’s permitted by federal laws for “restored lands.”
However, opponents like Governor Gavin Newsom and neighboring tribes argue that the casino is outside the tribe’s traditional territory and violates federal gaming laws. The final decision rests with the U.S. Interior Secretary.
California's Competitive Tribal Casino Market
California’s tribal gaming market is the largest in the U.S., generating $8 billion annually from 87 casinos, amid fierce competition. Of the 574 federally recognized tribes in the country, 110 of these are located in California.
As of January 2024, 76 tribes have ratified tribal-state gaming compacts with the state, while 4 more operate under federal Secretarial procedures with four additional tribes. Of these, 63 tribes operate 66 casinos throughout California.
Online gambling, including online sportsbooks, casinos, and poker, isn’t legal in California. The lack of legal online gambling options is mainly due to the influence and concerns of the native tribes. Several bills to legalize online gambling have been met with tribal opposition or lack of consensus.
There have been ongoing disagreements among tribes, card rooms, and potential online operators about how an online gambling market should be structured and regulated. Even recent ballot measures that aimed to legalize sports betting have failed.
Californians looking for smooth iGaming experiences may be able to use the options at an international casino without verification, based and licenced overseas. According to crypto expert Kane Pepi, no-verification casinos use cryptocurrency payments and blockchain, allowing them to bypass know-your-customer verification KYC processes. The use of crypto and blockchain is the reason these casinos have faster transaction speeds, enhanced security, and provide privacy-focused gambling experiences.
While online casinos like these are gaining popularity among Californians, land-based tribal casinos like the one proposed by the Koi Nation tribe face different challenges.
Koi Nation's Casino Plans Amid Growing Resistance
The Koi Nation is encountering increasing resistance to its proposed $600 million casino in Sonoma County. The tribe is seeking approval to develop the Shiloh Resort and Casino on 68 acres of land north of San Francisco.
In partnership with the Chickasaw Nation of Oklahoma, the Koi Nation is waiting for a decision from the U.S. Interior Secretary Deb Haaland. If the Interior Secretary places the land into federal trust, this decision means the casino project can move forward.
The Koi tribe wants to build a casino with 2,500 slot machines and a hotel with 400 rooms, allowing the tribe to join California's gambling market. However, due to the effect of the Indian Gaming Regulatory Act (IGRA) of 1988, establishing new casinos is restricted since the guidelines require tribes to have ancestral lands.
The Koi Nation claims ancestral ties to Lake County, Northern California, however, it has a historical connection to Sonoma County, where it wants to build the casino. This is outside its recognized ancestral territory, which is the reason the tribe faces opposition from local tribes and government officials.
Historical Context and Legal Basis of the Koi Nation’s Casino Proposal
The Koi Nation justifies its casino proposal on the following historical and legal points:
Ancestral Ties
The tribe is claiming an ancestral connection to the Sonoma County area, claiming historical trade routes and cultural ties. It argues that the historic path used by the tribe from Clear Lake basin to Bodega Bay essentially runs through part of the proposed casino site.
Federal Recognition
The Koi Nation became a federally recognized tribe in 1916 when the government designated the Lower Lake Rancheria for them. However, the tribe claims that the land was considered uninhabitable.
Termination and Restoration
In 1956, the tribe’s federal recognition was terminated but was regained in 2000. This specific historical context is crucial to their current arguments.
“Restored Lands” Exception
The tribe is looking to use the “restored lands” provision of IGRA. This provision allows landless tribes to open casinos outside their ancestral territories if they can prove their historical connection.
2019 Court Ruling
In 2019, a federal judge ruled that the Koi Nation had the right to pursue buying land for a casino, which supports its current efforts. The court decision ruled that the Koi Nation was treated unfairly in the past and should get back the land that it lost.
Dino Beltran, a leader of the Koi Nation, maintains that the casino is vital for self-sufficiency and the welfare of its members. Despite the tribe’s arguments, it is facing significant opposition from local tribal leaders and politicians who are questioning the tribe’s right to the land and whether the casino plan is legal.
Opposition and Controversy Surrounding the Casino Proposal
Governor Gavin Newsom spoke out against the plan, asking the government to look at other locations. Newsom and other officials believe that allowing the casino might stretch the rules of IGRA. Newsom opposes the plan because both proposed casinos are outside the tribes’ traditional lands.
The Koi Nation tribe strongly criticized Governor Gavin Newsom’s recent call to reject their plans for the new casino. The tribe said the governor misunderstood federal laws on tribal lands and gaming rights after he asked the U.S. government to reject their casino proposal.
The Department of the Interior denied the Koi Nation's casino proposal. Interestingly, the Scotts Valley Band of Pomo Indians in Solano County used the same arguments as the Koi Nation and looked to restore the federal trust status of these lands, which was denied.
At the same time, locals also oppose the Koi Nation’s project. The Federated Indians of Graton Rancheria, which consists of Coast Miwok and Southern Pomo Indians operate the Graton Resort & Casino in Sonoma County and oppose the Koi tribe's plans for a new casino.
Other tribes also oppose the move and accuse the Koi Nation of "reservation shopping" and doubt their ancestral connection to the area. Chairman Greg Sarris of the Graton Rancheria thanked Newsom for supporting tribal rights, saying the new developments would harm the cultural resources and land rights of other tribes in the area.
Existing tribes are often resistant to new developments, especially in areas close to their casinos. Despite these challenges, the Koi Nation remains determined to press forward with the Shiloh Resort and Casino, expressing frustration that other tribes, which are established and have regulated gaming operations, are now opposing their efforts.
Ultimately, the final decision on the casino projects will rest with U.S. Interior Secretary Deb Haaland. Sonoma County already hosts five federally recognized tribes, with existing gaming operations such as the River Rock Casino, which opened in 2002, and the Graton Resort & Casino, which began a billion expansion last year.
The Koi Nation has made two previous attempts to establish a casino, first near the Oakland Airport in 2005 and in 2014 at Mare Island, but both efforts were unsuccessful. We have to wait to see the final verdict this time.
