Konami Gaming doubling size of Las Vegas headquarters
Konami Gaming is more than doubling the size of its Las Vegas-based North American headquarters, signaling a potential challenge to industry’s largest slot machine manufacturers.
The company, a subsidiary of the Japan-based Konami Corp., began the expansion work on its corporate offices and manufacturing center last month. The project is located on a 12.33-acre site south of McCarran International Airport.
The company’s existing facility of nearly 123,000 square feet at 585 Trade Center Drive will be renovated once an additional 193,000-square-foot adjacent building is completed. The combined 316,000-square-foot complex will house corporate offices, the sales center, manufacturing and equipment service for Konami’s North American and European gaming businesses.
The project is expected to be completed in the summer of 2015 and will provide more than 300 construction jobs during the building process.
The company has more than 400 employees and the expansion will allow the slot machine maker to grow staffing levels and consolidate its offices under one roof. Konami currently operates a satellite corporate office and a warehouse facility in Las Vegas.
“What this project shows is the company’s commitment to the gaming industry and the opportunity we see for expansion and growth,” said Konami Gaming Senior Vice President Thomas Jingoli. “A facility of this size offers us the space we need for the three three-to-five-year growth plan we have established for the company.”
Analysts view Konami as one of the gaming industry’s top five slot manufacturers, along with International Game Technology, Bally Technologies, WMS Industries and Aristocrat Technologies.
Gaming analyst Todd Eilers of Eilers Research said in a recent quarterly performance report that Konami and the other large manufacturers are losing market share to smaller companies, such as Multimedia Games.
“When completed, this facility will have been renovated from top-to-bottom and will allow us to expand staff and our capabilities,” Jingoli said.
In January, Konami Gaming announced a licensing agreement with Hasbro Inc. to design and manufacture slot machines using the Dungeons & Dragons brand. The slot machines will include characters, stories and imaginary worlds found in the Dungeons & Dragons games.
“We’re clearly in a growth stage,” Jingoli said.
Konami officials didn’t put a price tag on the construction project, which is one of the largest current construction projects under way in Las Vegas. Gaming equipment provider SHFL entertainment is building a 110,000-square-foot facility on nine acres near Jones Boulevard and Interstate 215.
The Konami facility be built to meet Leadership in Energy and Environmental Design (LEED) for silver certification, will include a subterranean warehouse and assembly facility, subterranean parking, research and development facilities and an automated manufacturing floor.
Konami Corp. is publicly traded on the Tokyo, London and New York Stock Exchanges. On Wednesday, shares of Konami Corp. fell 51 cents, or 2.15 percent, to close at $23.17.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
