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<title>Protection racket</title>

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<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Protection racket</span></span>

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</style><div role="note" class="hatnote navigation-not-searchable">For the racehorse, see <a href="Protection_Racket" title="Protection Racket">Protection Racket</a>.</div>

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<p>A <b>protection racket</b> is a type of <a href="Racketeering" title="Racketeering">racket</a> and a scheme of <a href="Organized_crime" title="Organized crime">organized crime</a> perpetrated by a potentially hazardous organized crime group that generally guarantees <a href="Vigilantism" title="Vigilantism">protection outside the sanction of the law</a> to another entity or individual from <a href="Violence" title="Violence">violence</a>, <a href="Robbery" title="Robbery">robbery</a>, <a href="Ransack" class="mw-redirect" title="Ransack">ransacking</a>, <a href="Arson" title="Arson">arson</a>, <a href="Vandalism" title="Vandalism">vandalism</a>, and other such <a href="Threat" title="Threat">threats</a>, in exchange for payments at regular intervals. Each payment is called "protection money" or a "protection fee". An organized crime group determines an affordable or reasonable fee by negotiating with each of its payers, to ensure that each payer can pay the fee on a regular basis and on time. Protection rackets can vary in terms of their levels of sophistication or organization.

</p><p>The perpetrators of a protection racket may protect <a href="Soft_target" title="Soft target">vulnerable targets</a> from other dangerous individuals and groups or may simply offer to refrain from themselves carrying out attacks on the targets, and usually both of these forms of protection are implied in the racket. Due to the frequent implication that the racketeers may contribute to harming the target upon failure to pay, the protection racket is generally considered a form of <a href="Extortion" title="Extortion">extortion</a>. In some instances, the main potential threat to the target may be caused by the same group that offers to solve it in return for payment, but that fact may sometimes be concealed in order to ensure continual patronage and <a href="Funding" title="Funding">funding</a> of the <a href="Crime_syndicate" class="mw-redirect" title="Crime syndicate">crime syndicate</a> by the <a href="Coerce" class="mw-redirect" title="Coerce">coerced</a> party. In other cases, depending on the perpetrators' level of influence with authorities and the legality of the business being protected, protection rackets may also offer protection against <a href="Law_enforcement" title="Law enforcement">law enforcement</a> and police involvement, especially if the perpetrators <a href="Police_bribery" class="mw-redirect" title="Police bribery">bribe</a> or threaten local law enforcement.

</p><p>The protection racket mostly sells <a href="Physical_security" title="Physical security">physical security</a>. Through the credible threat of violence, the racketeers deter both third-party criminals and people in their own criminal organization from swindling, robbing, injuring, sabotaging, or otherwise harming their clients. The racket often occurs in situations and places where criminal threats to certain businesses, entities, or individuals are not effectively prevented or addressed by the prevailing system of <a href="Law_and_order_(politics)" title="Law and order (politics)">law and order</a> or <a href="Governance" title="Governance">governance</a>, or in cases of inadequate protection by the law for certain ethnic or socioeconomic groups. Protection rackets tend to form in markets in which the <a href="Law_enforcement" title="Law enforcement">law enforcement</a> cannot be counted on to provide legal protection, because of incompetence (as in weak, <a href="Political_corruption" title="Political corruption">corrupt</a>, or <a href="Failed_states" class="mw-redirect" title="Failed states">failed states</a>), illegality (when the targeted entity is involved in <a href="Black_market" title="Black market">black markets</a>), and/or because forms of government distrust exist among the entities involved. Hence, protection rackets are common in places or territories where criminal organizations resemble de facto authorities, or parallel governments. <a href="Sicily" title="Sicily">Sicily, Italy</a> is a prominent example of this phenomenon, where the <a href="Sicilian_Mafia" title="Sicilian Mafia">Cosa Nostra</a> collects <a href="Pizzo_(mafia)" title="Pizzo (mafia)">protection money</a> locally and resembles a de facto authority, or a parallel government.

</p><p>Protection rackets are often indistinguishable in practice from <a href="Extortion" title="Extortion">extortion</a> rackets, and generally distinguishable from <a href="Social_service" class="mw-redirect" title="Social service">social service</a> and <a href="Private_security" class="mw-redirect" title="Private security">private security</a> by the degree of implied threat; the racketeers themselves may threaten and attack businesses, technological infrastructure, and citizens if the payments are not made. A distinction is possible between a "pure" extortion protection racket, in which the racketeers might agree only not to attack a business or entity, and a broader protection racket offering some real private security in addition to such extortion. In either case, the racketeers generally agree to defend a business or individual from <i>any</i> attack by either themselves or third parties (other criminal gangs). In reality, the distinction between the two types of protection rackets is dubious, because in either case extortion racketeers may have to defend their clients against rival gangs to maintain their profits. By corollary, criminal gangs may have to maintain control of territories (turfs), as local businesses may collapse if forced to pay for protection from too many rackets, which then hurts all parties involved.

</p><p>Certain scholars, such as <a href="Diego_Gambetta" title="Diego Gambetta">Diego Gambetta</a>, classify criminal organizations engaged in protection racketeering as "<a href="Mafia" title="Mafia">mafia</a>", as the racket is popular with both the <a href="Sicilian_Mafia" title="Sicilian Mafia">Sicilian Mafia</a> and <a href="Italian-American_Mafia" class="mw-redirect" title="Italian-American Mafia">Italian-American Mafia</a>.

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<div class="mw-heading mw-heading2"><h2 id="Overview">Overview</h2></div>

<p>A protection racket is an operation where racketeers provide protection to persons and properties, settle disputes and enforce contracts in markets where the police and judicial system cannot be relied upon.

</p><p><a href="Diego_Gambetta" title="Diego Gambetta">Diego Gambetta</a>'s <i>The Sicilian Mafia</i> (1996)<sup id="cite_ref-Gambetta_1-0" class="reference"><a href="#cite_note-Gambetta-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> and Federico Varese's <i>The Russian Mafia</i> (2001)<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> define the mafia as a type of <a href="Organized_crime" title="Organized crime">organized crime</a> group that specializes in the provision of private protection.

</p><p>Protection racketeers or mafia groups operate mostly in the <a href="Black_market" title="Black market">black market</a>, providing buyers and sellers the security they need for smooth transactions; but empirical data collected by Gambetta and Varese suggests that mafia groups are able to offer private protection to corporations and individuals in legal markets when the state fails to offer sufficient and efficient protection to the people in need. Two elements distinguish racketeers from legal security firms. The first element is their willingness to deploy violent forms of retribution (going as far as <a href="Premeditated_murder" class="mw-redirect" title="Premeditated murder">murder</a>) that fall outside the limits the law normally extends to civilian security firms. The other element is that racketeers are willing to involve themselves in illegal markets.

</p><p>Recent studies show that mafia groups or gangs are not the only form of protection racket or extra-legal protector, and another important form of protection racket is corrupt networks consisting of public officials, especially those from <a href="Criminal_justice" title="Criminal justice">criminal justice</a> agencies.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> For example, Wang's <i>The Chinese Mafia</i> (2017)<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> examines protection rackets in China and suggests two types of extra-legal protectors, namely the Black Mafia (local gangs) and the Red Mafia (networks of corrupt government officials). Wang's narrative suggests that local gangs are quasi-law enforcers in both legal and illegal markets, and corrupt public officials are extra-legal protectors, safeguarding local gangs, protecting illegal entrepreneurs in the criminal underworld, offering protection to businesspeople, and selling public appointments to buyers.

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<div class="mw-heading mw-heading2"><h2 id="Territorial_monopolies">Territorial monopolies</h2></div>

<p>A protection racketeer cannot tolerate competition within his sphere of influence from another racketeer. If a dispute erupted between two clients (e.g. businessmen competing for a construction contract) who are protected by rival racketeers, the two racketeers would have to fight each other to win the dispute for their respective clients. The outcomes of such fights can be unpredictable, and neither racketeer would be able to guarantee a victory for his client. This would make their protection unreliable and of little value; their clients would likely dismiss them and settle the dispute by other means. Therefore, racketeers negotiate territories in which they can monopolize the use of violence in settling disputes.<sup id="cite_ref-Gambetta_1-1" class="reference"><a href="#cite_note-Gambetta-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 68–71">: 68–71 </span></sup> These territories may be geographical, or they may be a certain type of business or form of transaction.

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<div class="mw-heading mw-heading2"><h2 id="Providing_genuine_protection">Providing genuine protection</h2></div>

<p>Sometimes racketeers will warn other criminals that the client is under their protection and that they will punish anyone who harms the client. Services that the racketeers may offer may include the recovery of stolen property or punishing vandals. The racketeers may even advance the interests of the client by forcing out (or otherwise hindering or intimidating) unprotected competitors.<sup id="cite_ref-Gambetta_1-2" class="reference"><a href="#cite_note-Gambetta-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup>

</p><p>Protection from theft and vandalism is one service the racketeer may offer. For instance, in Sicily, <a href="Sicilian_Mafia" title="Sicilian Mafia">mafiosi</a> know thieves and fences in their territory, and can track down stolen goods and punish thieves who attack their clients.

</p><p>Protection racketeers establish what they hope will be indefinitely long bonds with their clients. This allows the racketeers to publicly declare a client to be under their protection. Thus, thieves and other predators will have little confusion as to who is and is not protected.

</p><p>Protection racketeers are not necessarily criminals. In <i><a href="A_Short_History_of_Progress" title="A Short History of Progress">A Short History of Progress</a></i>, <a href="Ronald_Wright" title="Ronald Wright">Ronald Wright</a> notes on p. 49, "The warrior caste, supposedly society's protectors, often become protection racketeers. In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for <a href="Public_Opinion_(book)#Manufacture_of_consent" title="Public Opinion (book)">manufacturing consent</a>."

</p>

<div class="mw-heading mw-heading2"><h2 id="Examples">Examples</h2></div>

<ul><li><a href="Danegeld" title="Danegeld">Danegeld</a> was a protection tax paid by <a href="Christendom" title="Christendom">Christendom</a> to stop <a href="Viking_raids" class="mw-redirect" title="Viking raids">Viking raids</a>.</li>

<li>During the late medieval and early modern era in the <a href="Scottish_Marches" title="Scottish Marches">Scottish Marches</a>, local farmers would often need to make payments to the <a href="Border_Reivers" class="mw-redirect" title="Border Reivers">Border Reivers</a> as a form of protection money to ensure they were not attacked. These agreements were called "Black mal", where "mal" was an <a href="Old_Norse" title="Old Norse">Old Norse</a> word meaning agreement. The word <a href="Blackmail" title="Blackmail">blackmail</a> entered the English language in 1530 as a result, but the word's meaning has changed since.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup></li>

<li>Many early Islamic empires levied a <a href="Jizya" title="Jizya">tax</a> upon non-Muslims in return for protection and an exemption from compulsory military service. There is no record of the tax being imposed by a nation after the late 1800s.</li>

<li>In Melbourne, Australia, <a href="Alphonse_Gangitano" title="Alphonse Gangitano">Alphonse Gangitano</a> ran a protection racket along the famous Lygon Street during the 1990s.</li>

<li>In <a href="Sicily" title="Sicily">Sicily</a>, Italy, officials say that 80% of businesses in the city of <a href="Palermo" title="Palermo">Palermo</a> pay <i><a href="Pizzo_(extortion)" class="mw-redirect" title="Pizzo (extortion)">pizzo</a></i>, or protection money, to the <a href="Sicilian_Mafia" title="Sicilian Mafia">Sicilian Mafia</a>.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup></li>

<li>In <a href="Ciudad_Ju%C3%A1rez" title="Ciudad Juárez">Ciudad Juárez</a>, Mexico, when the <a href="Mexican_Drug_War" class="mw-redirect" title="Mexican Drug War">Mexican Drug War</a> escalated in 2008, criminal groups like the <a href="Ju%C3%A1rez_Cartel" title="Juárez Cartel">Juárez Cartel</a> saw their financial backbone threatened and began asking for protection money from businesses ranging from convenience stores to clubs and restaurants with the threat of burning down the business or shooting everyone inside with machine guns.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup></li>

<li>In the early history of <a href="Post-Soviet_Russia" class="mw-redirect" title="Post-Soviet Russia">post-Soviet Russia</a>, law enforcement was too underfunded and poorly trained to protect businesses and enforce contracts. Most businesses had to join a protection racket (known as a <i>krysha</i>, the Russian word for "roof") run by local gangsters.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup></li>

<li>In the <a href="United_Kingdom" title="United Kingdom">United Kingdom</a> in the 1950s and 60s the <a href="Kray_twins" title="Kray twins">Kray twins</a> ran protection rackets in the <a href="East_End_of_London" title="East End of London">East End of London</a>.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup></li>

<li><a href="Chauth" title="Chauth">Chauth</a>, demanded by <a href="Sambhaji" title="Sambhaji">Sambhaji</a> and <a href="Peshva" class="mw-redirect" title="Peshva">Peshva</a> Brahmins during <a href="Mahratta_Invasions_of_Bengal" class="mw-redirect" title="Mahratta Invasions of Bengal">Mahratta Invasions of Bengal</a> and <a href="Mahratta_Sackings_of_Goa_and_Bombay-Bassein" class="mw-redirect" title="Mahratta Sackings of Goa and Bombay-Bassein">Mahratta Sackings of Goa and Bombay-Bassein</a>.</li></ul>

<div class="mw-heading mw-heading2"><h2 id="Government_protection_rackets">Government protection rackets</h2></div>

<p>Government officials may demand <a href="Bribery" title="Bribery">bribes</a> to look the other way or <a href="Extortion" title="Extortion">extort</a> something of value from citizens or corporations in the form of a <a href="Money_trail" class="mw-redirect" title="Money trail">kickback</a>. It need not always be money. A lucrative job after leaving office may have been in exchange for protection offered when in office. Payment may also show up indirectly in the form of a campaign contribution. Stopping government agencies as a whole, and buying protection in the government is called <a href="Regulatory_capture" title="Regulatory capture">regulatory capture</a>.

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<ul><li><a href="Abusive_power_and_control" class="mw-redirect" title="Abusive power and control">Abusive power and control</a></li>

<li><a href="Bribe_Payers_Index" title="Bribe Payers Index">Bribe Payers Index</a></li>

<li><a href="Bid_rigging" title="Bid rigging">Bid rigging</a></li>

<li><a href="Blat_(favors)" title="Blat (favors)">Blat (favors)</a></li>

<li><a href="Conflict_of_interest" title="Conflict of interest">Conflict of interest</a></li>

<li><a href="Extortion" title="Extortion">Extortion</a></li>

<li><a href="Financial_abuse" class="mw-redirect" title="Financial abuse">Financial abuse</a></li>

<li><a href="Foreign_Corrupt_Practices_Act" title="Foreign Corrupt Practices Act">Foreign Corrupt Practices Act</a></li>

<li><a href="Influence_peddling" title="Influence peddling">Influence peddling</a></li>

<li><a href="Jury_tampering" title="Jury tampering">Jury tampering</a></li>

<li><a href="Lobbying" title="Lobbying">Lobbying</a></li>

<li><a href="Match_fixing" title="Match fixing">Match fixing</a></li>

<li><a href="Money_trail" class="mw-redirect" title="Money trail">Money trail - Money loop</a></li>

<li><a href="Organized_crime" title="Organized crime">Organized crime</a></li>

<li><a href="Pizzo_(extortion)" class="mw-redirect" title="Pizzo (extortion)">Pizzo (extortion)</a></li>

<li><a href="Political_corruption" title="Political corruption">Political corruption</a></li>

<li><a href="Principal%E2%80%93agent_problem" title="Principal–agent problem">Principal–agent problem</a></li>

<li><a href="Racket_(crime)" class="mw-redirect" title="Racket (crime)">Racket (crime)</a></li>

<li><a href="Revolutionary_tax" title="Revolutionary tax">Revolutionary tax</a></li>

<li><a href="Taxation_as_theft" title="Taxation as theft">Taxation as theft</a></li>

<li><a href="Taxation_of_the_Jews_in_Europe" title="Taxation of the Jews in Europe">Taxation of the Jews in Europe</a></li>

<li><a href="Transparency_International" title="Transparency International">Transparency International</a></li>

<li><a href="Triad_(organized_crime)" title="Triad (organized crime)">Triad (organized crime)</a></li>

<li><a href="Tribute" title="Tribute">Tribute</a></li></ul>

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<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

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</style><cite id="CITEREFGambetta1996" class="citation book cs1"><a href="Diego_Gambetta" title="Diego Gambetta">Gambetta, Diego</a> (1996). <i>The Sicilian Mafia: The Business of Private Protection</i>. <a href="Harvard_University_Press" title="Harvard University Press">Harvard University Press</a>. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>0-674-80742-1</bdi>.</cite></span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><cite id="CITEREFVarese2001" class="citation book cs1">Varese, Federico (2001). <i>The Russian Mafia: Private Protection in a New Market Economy</i>. <a href="Oxford_University_Press" title="Oxford University Press">Oxford University Press</a>. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>0-19-829736-X</bdi>.</cite></span>

</li>

<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><cite id="CITEREFWang2013" class="citation journal cs1">Wang, Peng (2013). "The rise of the Red Mafia in China: a case study of organised crime and corruption in Chongqing". <i>Trends in Organized Crime</i>. <b>16</b> (1): <span class="nowrap">49–</span>73. <a href="Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1007%2Fs12117-012-9179-8">10.1007/s12117-012-9179-8</a>. <a href="S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:143858155">143858155</a>.</cite></span>

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<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><cite id="CITEREFWang2017" class="citation book cs1">Wang, Peng (2017). <i>The Chinese Mafia: Organized Crime, Corruption, and Extra-Legal Protection</i>. Oxford, England: <a href="Oxford_University_Press" title="Oxford University Press">Oxford University Press</a>. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-19-875840-2</bdi>.</cite></span>

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<li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><cite id="CITEREFBarbara_Mikkelson2012" class="citation web cs1">Barbara Mikkelson (April 16, 2012). <a rel="nofollow" class="external text" href="http://www.snopes.com/language/colors/blackmail.asp">"Etymology of blackmail"</a>. <i><a href="Snopes" title="Snopes">Snopes</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">April 23,</span> 2012</span>.</cite></span>

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<li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="http://news.bbc.co.uk/1/hi/world/europe/7976554.stm">"Couple plans 'mafia-free' wedding"</a>. <a href="BBC_News" title="BBC News">BBC News</a>. 1 April 2009<span class="reference-accessdate">. Retrieved <span class="nowrap">11 February</span> 2015</span>.</cite></span>

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<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><cite class="citation cs2"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20090814114626/http://www.diario.com.mx/nota.php?notaid=13a374065b1435a01b95e081f35cb455"><i>Suben 57% denuncias por extorsiones</i></a>, El Diario de Juarez, 2009-08-10, archived from <a rel="nofollow" class="external text" href="http://www.diario.com.mx/nota.php?notaid=13a374065b1435a01b95e081f35cb455">the original</a> on 2009-08-14</cite></span>

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<li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">The Washington Post <a rel="nofollow" class="external text" href="http://www.hartford-hwp.com/archives/63/067.html">Banditry Threatens the New Russia</a> 2 May 1997</span>

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<li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text">Misha Glenny (2008). <i>McMafia</i>. Vintage. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-09-948125-6</bdi></span>

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<li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><cite id="CITEREFAndrew_Cockburn2000" class="citation journal cs1">Andrew Cockburn (October 2000). <a rel="nofollow" class="external text" href="http://findarticles.com/p/articles/mi_m1316/is_10_32/ai_66495297/">"GODFATHER OF THE KREMLIN: Boris Berezovsky and the Looting of Russia. - Review - book review"</a>. <i><a href="Washington_Monthly" title="Washington Monthly">Washington Monthly</a></i>.</cite></span>

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<li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text">Metropolitan Police Service - <a rel="nofollow" class="external text" href="http://www.met.police.uk/history/krays.htm">The Kray twins - jailed in 1969</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130223114637/http://www.met.police.uk/history/krays.htm">Archived</a> 2013-02-23 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a></span>

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