Jesper Kampmann Madsen, the 35-year-old founder of Trace2Trace, a tech firm based in London, is on a mission to map the networks behind illegal gambling. Madsen, who was born in Denmark, is driven by his own experience with addiction, having battled his gambling problems for many years. He recalls how his habit began in his teenage years and escalated significantly when, in his early twenties, he scored a substantial win of around €22,000 on an unlicensed gambling site.
"I remember gambling all of it back the same day because they couldn’t pay it out in full immediately," he says. This win marked a pivotal moment in his life, transitioning his relationship with gambling into addiction, which was fueled by a constant barrage of illegal gambling sites.
The addiction spiraled out of control.
“At one point, I had only a few thousand euros left to gamble with, but then I won €180,000 in a single day. The next day I lost it all again,” he reflects. “The day after that I won €150,000 – and lost that too.” After such overwhelming loss, Madsen realized he needed to make a change. "I thought to myself: This has gone too far."
After seeking help from his parents, who took control of his finances, Madsen founded Spilfri.nu, a support service for individuals experiencing gambling issues. The service is free for users, while supporters pay a monthly fee to help monitor progress. It also extends to educational institutions aiming to protect students from gambling temptations.
Through his work with Spilfri.nu, Madsen gained insight into broader issues within the gambling industry. "Our work is not driven by opposition to the gambling industry or to legal, licensed operators. Quite the contrary."
Instead, his focus is on unearthing illegal and unregulated sites that operate without necessary licenses, as well as those that misuse or falsely claim licenses from legitimate operators. He observes that while one can attempt to avoid gambling, new foreign and crypto gambling sites continually emerge.
Madsen notes that regulators might shut down individual sites, yet cloned domains and replacement URLs frequently spring up in their place. He became keenly aware that the roots of the problem lie not solely in the individual websites but in the broader networks that support them.
This realization gave rise to Trace2Trace, founded to create a comprehensive view of the networks behind illegal gambling. Madsen explains, "Why not use the dataset I already have on gambling sites to map the most problematic ones, identify how they are connected and build a deeper picture of the networks behind them?"
Although still a relatively new venture, Trace2Trace has expanded its dataset to around 620,000 entries, underscoring the extensive scale of illegal gambling operations.
"We receive around 7,000 domains a day on average through the lists we monitor, including new and cloned sites," Madsen shares. The process begins with domains identified by authorities, which Trace2Trace then crawls to uncover technical connections and similarities such as shared hosting and DNS clusters.
The system tracks more than what meets the eye, following redirects or mechanisms that aren’t visible through standard web requests. Madsen emphasizes, “You have to follow that chain. In some cases, that chain can involve multiple layers.” He characterizes Trace2Trace as "a large search engine that continuously crawls websites."
While artificial intelligence plays a role, it is used mainly at the conclusion of the research process. The system first collects objective indicators before AI assesses patterns and connections. Madsen affirms, "We only provide evidence-based findings. We don’t say that something is a mirror site because we suspect it is. It is only reported when we are 100% confident there is a match."
The illegal gambling market is drawing increasing scrutiny from regulators and the industry, with various estimates of its size. A recent report from Fincord Intelligence, highlighted by the Betting and Gaming Council, predicts that illegal online gambling will generate about $50 billion in global gross revenue by 2025, with around 5,000 operator structures utilizing over 15,000 websites and apps.
Other estimates suggest that the unregulated market could be valued as high as $5.9 trillion by 2025, indicating the tremendous difficulty in accurately measuring this space. Similarly, a report commissioned by Euromat predicts rapid growth for Europe’s black market, estimating it will reach nearly €13 billion by the end of the year, fueled by a compound annual growth rate of 18% between 2019 and 2026.
For enforcement authorities, tracking this continually evolving ecosystem poses substantial challenges, yet Madsen believes that Trace2Trace provides an essential resource to tackle these issues. He cites ongoing investigations of major brands that have led to the identification of around 6,000 domains linked to a specific operator, although he suspects this number is just a fraction of the overall scope.
"I think what we’ve found so far is only a small part of the overall picture; the real number is at least twice as high,” he estimates. According to Euromat’s report, a core group of 25 offshore operators is responsible for 64% of the traffic to the black market in Europe.
Investigators can analyze how websites are presented across different jurisdictions, including language variations that indicate market targeting, and if operators have valid licenses. This intelligence can aid legitimate gambling companies and suppliers in monitoring where their products appear. Madsen confirmed that Trace2Trace currently serves clients interested in this type of analysis.
Trace2Trace's role is not to shut down websites, but rather to track domains, identify connections, and document changes for regulators and enforcement authorities. Madsen is realistic about the ongoing battle against illegal gambling, stating, “No, but you can make it very difficult for them.” The aim is to complicate the ability of illegal operators to simply replace blocked domains with new ones.
He believes this intelligence is crucial as the illegal gambling market evolves. The focus is shifting from simple domain blocking to broader strategies encompassing payments, advertising, and interjurisdictional cooperation. Madsen stresses the importance of understanding the intricate workings behind illegal networks which continue to operate with growing sophistication.
Reflecting on his journey from addiction to advocacy, Madsen ties his efforts to a personal mission. "I’m trying to address every stage: prevention, support for those already struggling, and then action against the illegal sites." He recognizes that while illegal gambling might not be entirely eradicated, making it more challenging to operate is a realistic goal for Trace2Trace and others in the field. As illegal operators enhance their tactics, the need for in-depth intelligence on these networks will only become more essential.
