×

Casino stocks fall, led by Mandalay Bay-owner MGM, after Las Vegas shooting

  • MGM Resorts International, which owns the Mandalay Bay hotel near where the shooting occurred, fell 5.6 percent Monday. Wynn Resorts slipped 1.2 percent.
  • Officials say at least 58 people are dead and more than 500 wounded after a gunman opened fire at a concert in Las Vegas.
  • It appeared the shooter was firing down at concertgoers from an upper floor at Mandalay Bay, a Las Vegas newspaper reports.

Shares of casino operators fell on Monday after the Las Vegas massacre, the deadliest shooting in U.S. history.

MGM Resorts International, which owns the Mandalay Bay hotel near where the shooting occurred, fell 5.6 percent Monday. Wynn Resorts slipped 1.2 percent. Las Vegas Sands fell as much as 2.1 percent before closing higher.

Dan Wasiolek, an analyst at Morningstar, said these pullbacks could be short-lived, however. "Travelers seem to have short-term memories, with the exception being a more lasting impact to an area that has seen multiple terror events in a short period of time, as was the case with Paris in 2015/2016 where it took those markets a year to begin to recover," he told CNBC in an email.

"Barring another tragic event in the gaming region the impact to travel and operators in the region could likely prove short-lived and pullbacks like these can be long-term add opportunities," Wasiolek said.

Officials said that at least 58 people are dead and more than 500 injured after a gunman opened fire at a concert.

The Route 91 Harvest country music festival was taking place across the road from the Mandalay Bay, which is near McCarran International Airport on the south side of the Las Vegas Strip.

"Our hearts and prayers go out to the victims of last night's shooting, their families, and those still fighting for their lives," said Jim Murren, MGM's chairman and CEO, in a statement. "We are working with law enforcement and will continue to do all we can to help all of those involved."

Police say the gunman, Stephen Paddock, 64, of Mesquite, Nevada, is dead and he had no known connection to terrorism, according to NBC News. Las Vegas police said that the shooter was apprehended on the 32nd floor of Mandalay Bay, where he died.

It appeared the shooter was firing down at concertgoers from an upper floor at Mandalay Bay, the Las Vegas Review-Journal said.

MGM earlier in the morning released a statement via Twitter, saying: "Our thoughts & prayers are with the victims of last night's tragic events. We're grateful for the immediate actions of our first responders."

CNBC has also reached out to Las Vegas Sands. Wynn Resorts declined to comment.

Geoff Freeman, president and CEO of the American Gaming Association, said the association is "closely monitoring the horrific events that took place in Las Vegas earlier this morning. Our thoughts and prayers are with those that were affected, and with the people of Las Vegas and Nevada."

"The gaming industry is a tight-knit community and Las Vegas is the beating heart of our operations," Freeman said, adding the association, will "offer our full assistance as the city recovers, and we will strive to honor the victims of this tragic event."

—CNBC's Arjun Kharpal contributed to this report.