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Racketeering vs. Racket — What's the Difference?

By Maham Liaqat & Fiza Rafique — Updated on April 5, 2024
Racketeering involves organized crime activities, while a racket refers to an illegal business scheme.
Racketeering vs. Racket — What's the Difference?

Difference Between Racketeering and Racket

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Key Differences

Racketeering is a broad term that encompasses the act of engaging in criminal activities as part of an organized group. These activities can include extortion, money laundering, and fraud, among others. Whereas, a racket is more specifically an illegal business or scheme, often part of the activities under the umbrella of racketeering, designed to fraudulently obtain money or goods.
The concept of racketeering is enshrined in law, notably through statutes like the RICO (Racketeer Influenced and Corrupt Organizations) Act in the United States, which targets organized crime groups and their operations. On the other hand, a racket might not necessarily invoke such specific legal frameworks but is generally recognized as any fraudulent scheme.
Racketeering requires an element of organized structure, involving a group of individuals working together to commit the crimes. Meanwhile, a racket can be conducted by an individual or a group, not requiring the same level of organizational complexity or the involvement of a larger syndicate.
In terms of prosecution, racketeering charges often come with severe penalties, including long prison sentences and hefty fines, due to the involvement in a range of criminal activities. In contrast, those involved in a racket, depending on the scale and harm caused, might face lesser charges unless it's part of a larger pattern of racketeering activity.
While both terms are related and often overlap, racketeering implies a broader scope of criminal activities within an organized framework, whereas a racket is a specific instance of an illegal enterprise or fraudulent operation within or outside such a framework.
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Comparison Chart

Definition

Engaging in criminal activities as part of an organized group.
An illegal business or scheme to fraudulently obtain money or goods.

Legal Framework

Often prosecuted under specific laws like the RICO Act.
Subject to general criminal laws related to fraud and theft.

Organization Required

Yes, involves a structured group or syndicate.
Can be conducted individually or by a group, without needing an organized syndicate.

Common Activities

Extortion, money laundering, fraud, and bribery.
Scams, fraudulent business schemes, and illegal sales.

Penalties

Severe, including long prison sentences and fines.
Varies, generally less severe unless part of broader racketeering activity.

Compare with Definitions

Racketeering

The operation of illegal businesses by organized crime groups.
Racketeering charges were brought against the gang for running illegal casinos.

Racket

A fraudulent scheme to make money.
He was caught running a racket that sold counterfeit merchandise.

Racketeering

Involvement in a system of organized crime.
She was indicted for her role in a racketeering scheme that spanned several states.

Racket

A scheme involving extortion or coercion.
The racket involved threatening business owners to pay for protection.

Racketeering

The act of committing multiple criminal offenses as part of an organized group.
The mob's racketeering activities included extortion and illegal gambling.

Racket

An illegal business operation.
The police shut down the racket operating out of the nightclub.

Racketeering

Engaging in bribery and corruption as part of an organized crime network.
The politician was found guilty of racketeering for accepting bribes.

Racket

Engaging in unlawful activities for profit.
The con artists devised a racket to defraud elderly homeowners.

Racketeering

The use of extortion or coercion by organized groups.
His business was a victim of the local mob's racketeering efforts.

Racket

A deceptive or dishonest business practice.
The so-called charity was nothing more than a racket.

Racketeering

Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a racket) to repeatedly or consistently collect money or other profit. According to the current common and most general definition, racketeering is an organized criminal act or activity in which the criminal act or activity is some form of substantial business, or a way to earn illegal money either regularly, or briefly but repeatedly.

Racket

A bat with a round or oval frame strung with catgut, nylon, etc., used especially in tennis, badminton, and squash
A squash racket

Racketeering

A person who engages in an illegal business or other organized illegal activities.

Racket

A loud unpleasant noise; a din
The kids were making a racket

Racketeering

To engage in an illegal business or other organized illegal activities.

Racket

An illegal or dishonest scheme for obtaining money
A protection racket

Racketeering

The criminal action of being involved in a racket.

Racket

Make or move with a loud unpleasant noise
Trains racketed by

Racketeering

Present participle of racketeer

Racket

Enjoy oneself socially; go in pursuit of pleasure or entertainment
A fabulous car for racketing around Paris

Racketeering

Engaging in a racket

Racket

A device consisting of an oval or circular frame with a tight interlaced network of strings and a handle, used to strike a ball or shuttlecock in various games.

Racket

A wooden paddle, as one used in table tennis.

Racket

A snowshoe.

Racket

A loud distressing noise.

Racket

A dishonest or fraudulent business or practice.

Racket

Often rackets An illegal moneymaking activity, especially one controlled by organized crime.

Racket

An easy, profitable means of livelihood.

Racket

(Slang) A business or occupation.

Racket

To make or move with a loud distressing noise.

Racket

To lead an active social life.

Racket

An implement with a handle connected to a round frame strung with wire, sinew, or plastic cords, and used to hit a ball, such as in tennis or a birdie in badminton.

Racket

(Canada) A snowshoe formed of cords stretched across a long and narrow frame of light wood.

Racket

A broad wooden shoe or patten for a man or horse, to allow walking on marshy or soft ground.

Racket

A loud noise.
Power tools work quickly, but they sure make a racket.
With all the racket they're making, I can't hear myself think!
What's all this racket?

Racket

An illegal scheme for profit; a fraud or swindle; or both coinstantiated.
Prostitution and gambling controlled by rackets
They had quite a racket devised to relieve customers of their money.

Racket

A carouse; any reckless dissipation.

Racket

Something taking place considered as exciting, trying, unusual, etc. or as an ordeal.

Racket

To strike with, or as if with, a racket.

Racket

(intransitive) To make a clattering noise.

Racket

To be dissipated; to carouse.

Racket

A thin strip of wood, having the ends brought together, forming a somewhat elliptical hoop, across which a network of catgut or cord is stretched. It is furnished with a handle, and is used for catching or striking a ball in tennis and similar games.
Each one [of the Indians] has a bat curved like a crosier, and ending in a racket.

Racket

A variety of the game of tennis played with peculiar long-handled rackets; - chiefly in the plural.

Racket

A snowshoe formed of cords stretched across a long and narrow frame of light wood.

Racket

A broad wooden shoe or patten for a man or horse, to enable him to step on marshy or soft ground.

Racket

Confused, clattering noise; din; noisy talk or sport.

Racket

A carouse; any reckless dissipation.

Racket

A scheme, dodge, trick, or the like; something taking place considered as exciting, trying, unusual, or the like; also, such occurrence considered as an ordeal; as, to work a racket; to stand upon the racket.

Racket

An organized illegal activity, such as illegal gambling, bootlegging, or extortion.

Racket

To strike with, or as with, a racket.
Poor man [is] racketed from one temptation to another.

Racket

To make a confused noise or racket.

Racket

To engage in noisy sport; to frolic.

Racket

To carouse or engage in dissipation.

Racket

A loud and disturbing noise

Racket

An illegal enterprise (such as extortion or fraud or drug peddling or prostitution) carried on for profit

Racket

The auditory experience of sound that lacks musical quality; sound that is a disagreeable auditory experience;
Modern music is just noise to me

Racket

A sports implement (usually consisting of a handle and an oval frame with a tightly interlaced network of strings) used to strike a ball (or shuttlecock) in various games

Racket

Celebrate noisily, often indulging in drinking; engage in uproarious festivities;
The members of the wedding party made merry all night
Let's whoop it up--the boss is gone!

Racket

Make loud and annoying noises

Racket

Hit (a ball) with a racket

Common Curiosities

Are all rackets considered racketeering?

Not all rackets are considered racketeering; racketeering implies a broader scope involving organized crime, whereas a racket can be a standalone illegal operation.

Can an individual be charged with racketeering?

Yes, individuals can be charged with racketeering if they are part of an organized group involved in criminal activities.

What is racketeering?

Racketeering refers to engaging in criminal activities, particularly as part of an organized crime group, including extortion, fraud, and money laundering.

How does a racket differ from racketeering?

A racket is a specific illegal or fraudulent business scheme, while racketeering encompasses a wider range of organized criminal activities.

How serious are the penalties for racketeering?

Penalties for racketeering are severe and can include long prison sentences and large fines, reflecting the serious nature of these crimes.

Is a Ponzi scheme a type of racket?

Yes, a Ponzi scheme is a type of racket, as it involves a fraudulent investment operation designed to deceive participants.

Can racketeering charges be applied to cybercrimes?

Yes, racketeering charges can encompass cybercrimes if they are part of organized criminal activities.

What constitutes a racket?

A racket involves any illegal business or scheme designed to fraudulently obtain money or goods, such as a scam or an extortion scheme.

What is the goal of a racket?

The primary goal of a racket is to profit through illegal or dishonest means, exploiting victims or manipulating systems.

Can a legal business be a front for a racket?

Yes, legal businesses can be used as fronts for rackets, concealing illegal activities such as money laundering.

What laws are used to prosecute racketeering?

In the U.S., the RICO Act is commonly used to prosecute racketeering, targeting organized crime and its activities.

How can racketeering impact society?

Racketeering can have widespread negative impacts, including undermining the economy, corrupting public officials, and harming communities.

How do authorities fight racketeering and rackets?

Authorities use a combination of undercover operations, surveillance, and legal measures like the RICO Act to combat racketeering and dismantle rackets.

Can non-violent crimes be considered racketeering?

Yes, non-violent crimes, including fraud and money laundering, can be part of racketeering activities within an organized crime context.

What is the difference in focus between laws against racketeering and individual rackets?

Laws against racketeering focus on dismantling organized crime networks, while laws against individual rackets target specific illegal operations.

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Author Spotlight

Written by
Maham Liaqat
Co-written by
Fiza Rafique
Fiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.

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