Tribal dispute over Sonoma County casino land reaches Ninth Circuit

In a hearing before a Ninth Circuit three-judge panel, the Federated Indians of Graton Rancheria challenged the Interior Department’s 2025 decision to place a 69-acre Sonoma County site into trust for the Koi Nation, which intends to develop a casino. Neal Katyal argued the approval should be remanded for a proper review by a senior official, warning that unchecked agency actions could erode tribal rights. Koi Nation lawyer Hagan Scotten countered that the tribe’s claim should not survive a public-rights exception, emphasizing that the Koi still owns the land and has not begun construction.

The Department of Justice’s Daniel Halainen defended the agency’s authority, while U.S. District Judge Rita Lin had previously found the approving official lacked legal authority. The panel, joined by Judges Jay Bybee and Daniel Bress, also noted a parallel lawsuit filed by Governor Gavin Newsom alleging the decision ignored the tribe’s historical connection to the site.