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Las Vegas bus siege: Gunman surrenders after fatal shooting shuts down famous casino strip

Crisis negotiators, robots and armoured vehicles surrounded the bus on an otherwise empty Las Vegas strip. Credit: AP

A gunman who opened fire on a double decker bus to shut down the Las Vegas Strip barricaded himself for hours in a siege that claimed a life.

The shooting sparked a major security scare as tourists in casinos were ordered to bunker down, though hotel guests watched on from balconies and roof top pools as the siege began at 11am.

Crisis negotiators, robots and armoured vehicles surrounded the bus on Las Vegas Boulevard, near the Cosmopolitan hotel-casino.

Retired NBA basketball player Scot Pollard, who was staying at the hotel, said the negotiations could clearly be heard from the casino.

"We can hear them saying things like, 'No one else needs to get hurt', 'Come out with your hands up. We are not going anywhere. We are not leaving'," he said.

Two people were taken to hospital - where one died - after the gunman gave himself up after four-and-a-half hours. Credit: AP

The man, armed with a handgun, gave himself up at 3.30pm without a police shot fired.

"He was on the bus. He was shooting people on the bus," Clark County assistant sheriff Tom Roberts said.

"He was just contained to that location. He never exited the bus."

Two people were taken to hospital after the shooting, University Medical Centre spokeswoman Danita Cohen said.

One died and the other was said to be in a fair condition.

The bus siege was unconnected to an earlier robbery at the Bellagio hotel and casino. Credit: AP

Visitors were also hiding inside some of the other prominent casino properties affected, including the Bellagio, Paris, Planet Hollywood and Bally.

Las Vegas police officer Larry Hadfield said police believe the man is the only suspect and could rule out terrorism as a motive.

Police said the bus siege had no connection to an earlier robbery nearby that shut down a part of the Bellagio.