Police spokeswoman Michele Gigante said officers heard shots fired in the area of K and Second streets at 9:38 p.m. She said a fight in the Sports Corner Cafe spilled out onto the street and five people were shot.
Gigante said she did not know the gender or age of the victims, nor was any information available regarding suspects.
Because of the shooting, police made the decision to cancel the midnight fireworks show planned as part of New Year's Eve festivities. A police helicopter flew over the area announcing the cancellation.
Gigante said the area around the crime scene is closed to the public. Although some parts of Old Sacramento remain open, she advised people not to come into the area tonight.
The midnight show was one of two New Year's Eve fireworks displays, hosted by the Sacramento Convention & Visitors Bureau, that were expected to draw as many as 40,000 people. Mike Testa, the bureau's vice president of business development, earlier described the show as the biggest in the area and said it polishes Sacramento's reputation as one of the key cities in the region and the state. The 9 p.m. show did take place.