A Chinese-owned firm will pay $40 million to enter exclusive negotiations to set up a gaming area in Phnom Penh casino NagaWorld, according to a statement released on Wednesday by NagaWorld’s publicly-traded owner NagaCorp in Hong Kong.
The company, CMC Phnom Penh Import-Export, “expressed confidence in the investment climate in Cambodia” thanks to potential Chinese gamblers arriving via NagaWorld’s airline and the attractiveness of NagaWorld’s luxury duty free stores, according to the statement.
If negotiations were to fail, neither party would have any claims against the other despite the prerequisite $40 million payment, the announcement reads.
However, the price tag has been described by Union Gaming Research analysts as a replacement of an up front fee for the Chinese firm to secure a concession for 300 slot machines, gaming site GGR Asia reported.
According to NagaCorp, CMC Phnom Penh Import-Export is owned by “a group of independent Chinese businessmen” and was referred to Naga by NagaWorld’s builder, China Central Asia Group.