Torstar was acquired by investment firm Nordstar Capital LP for around $60 million after the Toronto Star newspaper had been controlled and owned by a trust of families since 1892. The new owners promised to maintain the company focus by producing "world-class journalism befitting the Star's storied history."
The new owners have announced that it plans to launch an online casino brand in Ontario sometime this year. Corey Goodman, Torstar's chief corporate development officer, said in a press release, "We are excited at the prospect of participating in a regulated online Ontario gaming market with a made in Ontario product,"
The new owners are saying the falling revenues from print advertising in the newspaper business has motivated the company to enter into the online gambling market and to fund continuing efforts to fulfill the original focus of the news source. Co-owner Paul Rivett said, "Doing this as part of Torstar will help support the growth and expansion of quality community-based journalism,"
As it stands right now however the Ontario Provincial Government is the only legal entity to supply online gambling to the public. The Province’s recent budget did indicate it will open the market for online gambling to other firms after the Ontario Lottery and Gaming Corporation revenue dropped from $2.3 billion in 2019 to just $200 million this year. Torstar states its plans are contingent on those government plans moving ahead.
Rivett also commented, "We want to ensure the new marketplace is well represented with a Canadian, Ontario-based gaming brand so that more of our players' entertainment dollars stay in our province,"
In an interview with the Canadian Press, Jim Warren a gaming industry consultant said, "We don't know how big the market is going to be in Ontario yet, because it will depend on the consultation process within government, which is about to happen in the next couple of months," adding, "What we do know is that Torstar is looking at diversifying the revenue model of how we fund and pay for reporters, columnists, and editorial staff."
