Cambodian casino operator NagaCorp says an investor has agreed to pay $40m just to enter into negotiations on opening a slots operation at the NagaWorld casino in Phnom Penh.

In a filing this week with the Hong Kong Stock Exchange, NagaCorp said CMC Phnom Penh Import Export Co Ltd had expressed interest in setting up an electronic gaming business in a designated area on NagaWorld’s ground floor for a prescribed period. In exchange for simply opening negotiations on this proposal, CMC has agreed to pay a non-refundable fee of $40m.

CMC is owned by “a group of independent Chinese businessmen” who were referred by China Central Asia Group, the company that built NagaWorld and is also serving as turnkey contractor for the Naga2 property being built in NagaWorld’s shadow.

Union Gaming Research said the space CMC was looking to occupy currently holds 300 slot machines operated by Best Merit, whose concession expires at the end of this year. CMC’s $40m negotiation fee would serve as the traditional upfront payment for such deals, with NagaCorp keeping about 70% of future revenue from the machines. Union Gaming suggested the deal could push NagaWorld’s slots revenue “materially higher,” given that CMC is likely to bring in newer machines than Best Merit’s, which are “among the oldest on the floor.”