A major Canadian newspaper that currently runs over 75 different newspapers but is radically shifting its revenue-producing model by creating an online gambling platform in an effort to fund its journalistic operations. The newspaper operator has no experience in the industry and faces tough competition from highly rated online casinos like PlayAmo, where Canadians can find all of the latest games.
They claimed that as advertising revenue is in decline and print newspaper sales are very modest, and the company is forced to look for new ways to fund its world-class journalism. Few industry experts would have expected the publisher to attempt to fix its revenue woes by creating its own online casino.
Booming online betting
When you look at the booming online betting industry where Canadians spend billions annually and which is only expected to rise thanks to increased legalization, you can start to see why companies from other industries want a slice of that action.
To some, this latest move signals just how desperate publishing companies are to turn a profit that they are willing to literally gamble on a new business that they have no expertise in. The Canadian media giant is hoping that it can leverage its numerous papers to make its latest venture a success. The plan is to use the additional funds to enable the company to continue to produce high-quality news and, in the process, create more jobs and grow the Ontario economy.
The media company is hoping that it can continue supporting progressive causes and charities by unlocking another revenue stream. However, this remains to be seen, and the online gambling industry is highly competitive and risky. They may be better served by focusing on building businesses they have core competencies in.
This isn’t the first time the newspaper publisher has tried some unconventional methods to raise funds. They have experimented with erotic novels, which proved to be a big hit before selling that portion of the business for a hefty profit. They also, for a brief time, ran a delivery service that specialized in shipping packages around Canada, but that proved to be unsuccessful.
While the online gambling market is undoubtedly lucrative and estimated at being worth billions in Canada alone, the chance of a newspaper company succeeding seems low. There are already numerous established online casinos in Canada that have loyal customer bases and have years of experience in the industry. One online casino that has had great success in the Canadian market is PlayAmo.
The media company so far has not revealed any strategies on how it plans to succeed in the online gaming market. However, the first step for the newspaper publisher is to be granted a gambling license which is no sure bet.