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Kalshi, Robinhood, Crypto.com and DraftKings’ own prediction-market operation are all competing for activity around sporting events. Beynon says prediction markets are having a larger effect on valuations than on fundamentals so far.

The existence of a new competitor does not automatically mean sportsbook revenue will collapse. But valuations do not require proof of collapse to fall. A loss of confidence in future growth can be enough.

And now sportsbooks are joining the prediction market race themselves. DraftKings has moved into the market, while Flutter is also developing its presence. That could make prediction markets an additional source of revenue rather than a straightforward threat.

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“I’m trying to address every stage: prevention, support for people who are already struggling, and then action against the illegal sites.”

He does not believe illegal gambling can simply be eliminated. But he believes it can be made harder to operate. That may be the more realistic role for companies such as Trace2Trace as the illegal market evolves: not replacing regulators or enforcement agencies, but providing the intelligence needed to see beyond the individual URL. For Madsen, the motivation remains deeply personal: “I know very well what gambling addiction can do to people.”

The emergence of his company along with a string of others reflects a growing need in the industry: as illegal operators become more adept at moving, cloning and disguising their online presence, enforcement may increasingly depend on understanding the deep workings of the networks behind the screen.