Torstar to launch online casino to benefit a new revenue stream
April 29, 2021
In recent years, many traditional media companies have struggled to keep up with the changing landscape of news consumption. With the rise of social media and online content providers, it is getting harder for newspapers and other print publications to survive in what has become a digital world. Torstar Corporation is one company that has not only managed to overcome these challenges but also make its business thrive again by embracing new innovative models such as developing an online casino platform.
Torstar's strategy seems like a winning formula on paper - while some argue that it might be too early to tell if this will be successful, there are already signs that show promise for success. The gamble may come down to whether or not enough people will gamble in the online casino - but if it does, Torstar stands to benefit from not just a new revenue stream but also an increase in readership and traffic.
Torstar has been exploring the idea of creating an online casino for a few years now and is in talks with various regulators to ensure that this venture does not jeopardize its licensing agreements with other major territorial gaming jurisdictions, such as Manitoba Lotteries and Liquor Commission (MBLL) or Ontario's Alcohol and Gaming Commission.
"The provincial regulator in Manitoba has made it clear that they would prefer not to have a second casino licence holder operating at the same time as us, so we are going to take their advice," said Torstar Chief Executive Officer John Boynton. "We will be looking for some type of licensing agreement with them within this next year."
According to Paul Rivett, CEO of Torstar, the company's strategy is to fund journalism with a sustainable model that does not rely on advertising revenue and government subsidies. The online casino will be user-friendly and free from gambling addiction features such as allowing play for limited amounts of time or requiring players to set a budget, which may entice more people to gamble at the casino.
In addition, Torstar will not allow minors to gamble and is also exploring the idea of a voluntary user-funded model so that users have an opportunity to contribute directly what they want for journalism from
TorStar is moving forward. It's worth noting that these features are in line with how traditional casinos are regulated but often differ from other online gambling sites.
Torstar has found a sustainable model that does not rely on advertising revenue and government subsidies.