Federal Judge Clears Way for Coquille Tribe’s Controversial Oregon Casino 170 Miles From Reservation

A federal judge has rejected an attempt by three Northern California and Oregon tribes to overturn approval of the Coquille Indian Tribe’s controversial casino in the city of Medford, Ore., ruling that the U.S. Department of the Interior acted lawfully when it placed the property into trust for gaming.

U.S. District Judge Amit Mehta in Washington, D.C., on Friday (Sept. 4) denied a summary judgment motion brought by the Cow Creek Band of Umpqua Tribe of Indians, the Karuk Tribe, and the Tolowa Dee-ni’ Nation, while granting cross-motions from the Department of the Interior and the Coquille Tribe.

The tribe first applied to have the 2.4-acre site in Medford taken into trust in 2012 with plans to develop a Class II gaming facility. The land is roughly 170 miles from Coquille’s main reservation in Coos Bay, where it operates The Mill Casino.

Interior initially rejected the application in 2020, in part because of the distance from the reservation and concerns raised by state and local officials. But the agency reversed course following further review and approved the trust acquisition and gaming use in January 2025.

The property was transferred into trust that same day, and gaming commenced the following morning, according to court documents. The facility currently operates on a limited scale, while long-term plans call for a 16,000-square-foot gaming floor featuring 650 Class II machines.

‘Restored Lands’ Dispute

The three plaintiff tribes, which operate competing casinos within 150 miles of the Medford property, argued the new facility would siphon gaming revenue and reduce funds available for education, health care, and other tribal services.

A central legal question was whether the property qualified for the “restored lands” exception under the Indian Gaming Regulatory Act (IGRA). IGRA generally prohibits gambling on tribal land taken into trust after Oct. 17, 1988, but carves out exceptions for tribes that regained federal recognition.

The Coquille Restoration Act of 1989 permits the interior secretary to accept land into trust within the tribe’s designated service area, which spans Coos, Curry, Douglas, Jackson, and Lane counties. Because Medford is located in Jackson County, Interior determined the property qualified as restored land.

Mehta concurred, finding that D.C. Circuit precedent fully supported the agency’s interpretation.

Interior Reversal Upheld

The plaintiff tribes also argued that Interior acted arbitrarily and capriciously when it reversed its initial rejection of the project.

Mehta disagreed, noting that circumstances had evolved significantly during the lengthy bureaucratic review.

The Coquille Tribe had entered into a binding municipal services agreement with the city of Medford, and Interior determined the tribe’s financial need had intensified as revenue from its existing Mill Casino failed to keep pace with operational costs.

Interior estimated the Medford facility could eventually generate $18.5 million annually.

“Plaintiffs may disagree, but the court is not empowered to revisit the decision so long as it is ‘reasonable and reasonably explained,’” Mehta wrote.

The ruling represents a final, appealable order, leaving the three tribes free to take their challenge to the U.S. Court of Appeals for the D.C. Circuit.