Jesper Kampmann Madsen, the 35-year-old founder of the London-based tech company Trace2Trace, is dedicated to developing technology that tracks the networks behind illegal gambling activities. Originally from Denmark, Madsen’s personal bout with gambling addiction drives his mission to combat this issue in a meaningful way.
His gambling journey began as a teenager, initially seen as a form of entertainment. However, in his early twenties, a significant win on an unlicensed gambling site changed everything, netting him approximately €22,000. "I remember gambling all of it back the same day because they couldn’t pay it out in full immediately," Madsen recalls.
This win marked a turning point, leading him into addiction, which exacerbated through constant exposure to illegal gambling sites. “That jackpot was really the beginning of my gambling addiction,” he said. The intensity escalated to a point where a single day saw him winning €180,000—only to lose it all by the next morning. This cycle repeated itself, which led him to realize, "This has gone too far."
After seeking help, which included his parents taking over his finances, Madsen created Spilfri.nu, a support service for individuals struggling with gambling. The platform is free for users, with optional monthly fees for supporters who monitor progress. Madsen emphasizes that the service, while helping individuals, also highlights a larger issue within the gambling industry.
“Our work is not driven by opposition to the gambling industry or to legal, licensed operators. Quite the contrary,” he clarifies. The focus of Spilfri.nu is on identifying illegal operators that provide gambling services without appropriate licensing, and those that misrepresent themselves by falsely claiming to have licenses.
Madsen observed how regulators would close down illicit gambling sites, only for identical, cloned domains to spring up immediately afterwards. This prompted him to shift his approach: “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?” Thus, Trace2Trace was born.
Although still in its early stages, the Trace2Trace dataset has expanded to approximately 620,000 entries, showcasing the vast scale of illegal gambling. Madsen explained, "We receive around 7,000 domains a day through the lists we monitor, including new and cloned sites.” The process begins by identifying domains flagged by authorities. Trace2Trace then analyzes these sites for technical connections and similarities, such as shared hosting or logos, and tracks redirect mechanisms that may obscure the actual gambling destination.
The complexities can be staggering; Madsen notes that a site might redirect multiple times before reaching the gambling domain. "You have to follow that chain," he emphasizes, illustrating the intricate web of online gambling.
Trace2Trace employs AI primarily in the later stages of its analysis. Initially, it compiles objective data indicators, with AI assessing connections only after thorough investigations have been conducted. As Madsen points out, "We only provide evidence-based findings."
The challenge of addressing illegal gambling is particularly ripe in today's landscape, with a recent report from Fincord Intelligence projecting that such activities could yield around $50 billion in gross revenue by 2025. Estimates of illegal online gambling range widely, and separate research reveals that unregulated gambling could hit a staggering $5.9 trillion in wagering value over the same time frame.
Despite the daunting figures, Madsen remains focused on the role of Trace2Trace in helping authorities keep pace with an ever-evolving landscape. For instance, in examining a well-known global brand, his initial scan uncovered around 1,600 domains, which expanded to nearly 6,000 when associated domains were added. Madsen believes these counts are only a fraction of the reality: "I’m almost certain the real number is at least twice as high."
Additionally, Madsen highlighted how operators can tailor their sites to appeal to specific jurisdictions, such as using local languages, raising questions about their licensing status. While Trace2Trace does not shut down websites, it serves as an informational resource for regulators and enforcement agencies, facilitating a deeper understanding of illegal networks.
Illegal gambling can be a challenging foe to tackle, as Madsen acknowledges. "No, but you can make it very difficult for them," he states regarding the fight against illicit operators. His belief centers around creating barriers for these operators, so they are less likely to simply replace blocked domains.
Madsen’s holistic approach aims to address gambling through prevention, support for those already suffering, and action against illegal sites. Drawing from personal experience, he remains committed to shedding light on a pervasive issue that affects many. As he puts it, “I know very well what gambling addiction can do to people.” The advent of his company, alongside others in the field, signals a growing recognition of the need for robust intelligence to understand and challenge illegal gambling operations effectively.
