Jesper Kampmann Madsen, the founder of the London-based tech firm Trace2Trace, is dedicated to developing technology that uncovers the networks linked to illegal gambling. Madsen, 35, originally from Denmark, draws from his personal experiences with gambling addiction in his mission against illicit gambling practices.
Madsen first engaged in habitual gambling as a teenager. Initially, it was a source of entertainment, but that changed dramatically when, in his early twenties, he won approximately €22,000 on an unlicensed online gambling site. He recalls, “I remember gambling all of it back the same day because they couldn’t pay it out in full immediately.” This victory fundamentally altered his relationship with gambling, as he stated, “That jackpot was really the beginning of my gambling addiction.” It was a struggle fueled by constant access to illegal gambling sites.
The cycle of addiction spiraled further out of control. Madsen recounts, “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. The day after that I won €150,000 – and lost that too.” Realizing the extent of his problem, he resolved to change course, thinking, “This has gone too far.”
Seeking help became paramount. With the support of his parents, who took charge of his finances, Madsen embarked on a path to recovery. “It was embarrassing, but it was necessary,” he admits. This journey inspired him to launch Spilfri.nu, a free support and blocking service for individuals struggling with gambling issues. The service also caters to schools wanting to safeguard students from gambling temptations.
Through his work with Spilfri.nu, Madsen became aware of broader issues within the gambling industry, stating, “Our work is not driven by opposition to the gambling industry or to legal, licensed operators. Quite the contrary.” His focus lies in identifying illegal gambling websites and operators who offer services without the necessary licenses, or who misrepresent their licensing.
Madsen describes the challenges posed by illegal gambling: “You can try to stop gambling, but then you go onto foreign gambling sites and crypto casinos and they keep appearing.” He observed a pattern where regulators would shut down illegal sites only for new cloned domains and mirror sites to appear. He realized that the issue extended beyond individual websites; it involved the entire network behind them. This epiphany gave rise to Trace2Trace.
Though Trace2Trace is relatively new, Madsen reports that its dataset has ballooned to around 620,000 entries, reflecting the 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,” he explained. The system's operation starts with domains identified by authorities, which Trace2Trace then crawls for technical similarities and connections, such as shared hosting and code patterns.
Following chains of redirects allows Trace2Trace to reveal how seemingly innocuous local sites may lead to illicit gambling destinations. “You have to follow that chain,” Madsen advises, noting that a site can redirect multiple times before reaching its final destination. He likens Trace2Trace's function to that of a search engine, continuously scanning the web. While AI is part of the process, it is used primarily to identify patterns after data is collected, ensuring that findings are evidence-based.
The illegal gambling market is growing, capturing attention from both regulators and the industry. A recent report from Fincord Intelligence, highlighted by the Betting and Gaming Council, projected illegal online gambling to generate around $50 billion in gross revenue by 2025, involving roughly 5,000 operator structures across more than 15,000 websites and apps. Other estimates suggest even higher figures, illustrating the difficulties in quantifying this shadowy market.
For instance, Gaming Compliance International's research valued unregulated online gambling at $5.9 trillion in wagering by 2025, with unlicensed operators comprising 78% of global online gaming gross gaming revenue. Additionally, Euromat suggested that the European black market could soar to €13 billion by the end of the year, maintaining an annual growth rate of 18% from 2019 to 2026.
Tracking the dynamic ecosystem of illegal gambling sites poses challenges for enforcement agencies. Madsen sees Trace2Trace as a critical tool in this fight. One of its investigations focused on a well-known global brand, uncovering approximately 1,600 domains and revealing connections to about 4,500 more, totaling roughly 6,000 identified domains—though Madsen estimates the actual count may be double that. “I think what we’ve found so far is only a small part of the overall picture,” he remarked.
Euromat's report indicates that a select group of 25 offshore operators may be responsible for as much as 64% of European black market traffic. Madsen also pointed out that investigators can examine how sites target different jurisdictions, such as local language presentations suggesting market targeting.
Madsen emphasizes that while Trace2Trace does not directly shut down websites, it monitors and documents domain changes, providing vital information to regulators and enforcement authorities. He believes that while illegal gambling may never be fully eradicated, making operations more challenging is a feasible goal. “If they knew there was a tool that would find those new sites as well, they might become more cautious.”
This philosophy aligns with a broader transformation in the industry's approach to illegal gambling, which now also focuses on payment channels, advertising, and cross-jurisdiction cooperation. Madsen acknowledges the intricacies of the illegal market, but he remains committed to his mission, saying, “I’m trying to address every stage: prevention, support for people who are already struggling, and then action against the illegal sites.”
