CANADA’S TORSTAR TURNS TO GAMBLING TO GENERATE REVENUE

Canada’s Torstar Corp. is the latest traditional publishing company to turn to gambling as a way of remaining financially viable. 

The company publishes more than 70 regional and community newspapers across Canada, including the country’s largest daily newspaper, The Toronto Star, along with the Hamilton Spectator, and the Niagara Falls Review. 

However, as with publishers globally, the company is finding its traditional business model is becoming ever more challenging due to technological and societal changes – with the ongoing COVID-19 crisis significantly accelerating those changes.

In an effort to generate revenue that can support its publishing operations, Torstar has announced plans to launch a new casino gaming app. 

The plans are subject to the anticipated launch of a regulated gambling market in the province later this year, and approval from the Alcohol and Gaming Commission of Ontario.

“As an Ontario-based media business and trusted brand for more than 128 years, we believe Torstar will provide a unique and responsible gaming brand that creates new jobs, offers growth for the Ontario economy and generates new tax revenue to help support important programs in our province,” said Torstar executive Corey Goodman.

In August 2020, Torstar was acquired by investment company Nordstar, which has committed to continue to focus on “world-class journalism”, while finding new ways to generate revenue, like online gambling. 

AYO.NEWS says:

Newspaper and media publishers getting involved in the online gambling space is nothing new, especially in mature gambling markets like the UK, but the fact that a traditionally very moralistic publisher like Torstar is diving into the online casino world shows just how tough things are for publishers. 

On the plus side, if handled carefully, the considerable reach and assets a company like Torstar can bring to bear should enable it to make an impact in the gambling market. However, publishers with such a long history that are trusted to be impartial by millions, and are so integrated into communities, clearly run the risk of tarnishing reputations if things are handled poorly. 

Staying with newspapers and gambling, in October 2020, British bookies BetVictor announced a partnership with Germany’s most popular newspaper, to launch a new sports betting platform called BildBet.