The term “Mafia” originally referred to the Sicilian criminal organization but has since been applied to similar groups worldwide. Examples include the Russian mafia, and the Yakuza in Japan.
Like all criminal organizations, the primary goal of the Mafia is profit. They achieve this through a range of illegal activities. Dealing with illegal goods, in particular, is highly lucrative. These goods tend to be expensive, untaxed, and unregulated, offering substantial profits to those involved. Another method the Mafia employs to generate income is bypassing business regulations to maximize their profits.
They are involved in many other industries, ranging from robberies to insurance scams. Let’s take a look at some of the illegal and semi-legal businesses that Mafia engages in to generate cash:
Waste Disposal
The mafia has ingeniously tapped into the waste disposal industry, turning it into a profitable and illicit business. One of their key strategies involves establishing sham waste management companies. These fronts secure contracts from local authorities to collect domestic waste, often at slightly lower rates than legitimate competitors.
However, instead of proper disposal, they clandestinely dump and incinerate the waste in rural areas. This alarming practice is widespread across Italy, with numerous waste deposits in Lombardy succumbing to fires in recent years.
Furthermore, the mafia ventures into the handling of special waste, particularly chemical and biological materials. Disposing of these hazardous substances is an expensive endeavor for industries. In a bid to cut costs, some businesses either pay unscrupulous companies or knowingly collaborate with mafia-controlled entities. The result? Dangerous waste is concealed beneath fields and meadows, endangering both the environment and public health.
Illegal Gambling
The realm of gambling is one of the oldest and most lucrative money-making avenues the mafia has been involved in. Their underground gambling services cater to willing participants, often accompanied by the “management” of prostitutes. While high-stakes poker games in the secretive backrooms of social clubs may be the poster image, these games primarily serve as a means to draw gamblers into their web. Once ensnared, the mob redirects their focus toward video gaming machines, which are evidently more profitable.
In parallel, the mafia recruits young women into prostitution, with Mafiosi assuming the roles of their “pimps” both inside and outside the gambling establishments. These pimps oversee the girls’ activities, collecting a share of their earnings in return for providing clients and enforcing payment. This dark synergy between gambling and prostitution forms a sinister nexus that bolsters the mafia’s financial empire while exploiting vulnerable individuals caught in their web.
Sports Betting
The Sicilian-American Mafia, known by various monikers like the mob or wise guys, shares a common pseudonym with ace sports bettors: wise guys. This connection is more than coincidental, as the Mafia has long had its influence in the world of sports betting.
Sports betting serves as a significant revenue stream for the Mafia, utilizing offshore servers, companies, toll-free phone lines, and even phone apps to facilitate thousands of clients’ bets. While early sports betting primarily revolved around horse racing, it was professional baseball that truly propelled the practice into popularity. Initially, sports betting was seen as a mere form of entertainment, but it was marred by the Black Sox Scandal.
The Black Sox Scandal, investigated notably by sportswriter Hugh Fullerton, revealed scandalous instances of attempted match-fixing in baseball. This dark episode tainted the perception of sports betting, but it also underscored the Mafia’s involvement in this lucrative industry, which they continue to exploit to this day.
Loan-sharking
The mafia offers fast loans to individuals in dire financial straits or those with poor credit histories. This ancient practice is often referred to as “shylocking,” inspired by the merciless moneylender character in Shakespeare’s The Merchant of Venice. Mobsters extend street loans with exorbitant interest rates. The repayment of these loans is enforced through menacing threats and the actual use of violence by enforcers, turning borrowing into a perilous endeavor.
Drug Trade
The mafia has established significant stakes in the drug trade, covering a spectrum of activities from drug manufacturing to transportation and distribution. Their involvement even extends to smuggling drugs across international borders.
Despite earlier beliefs, notably popular in the 1960s and 70s, that the traditional Italian Mafia refrained from selling drugs, the drug trade has evolved into the primary source of profit for major Mafia syndicates.
In the contemporary landscape, drugs hold the same pivotal role for the mob as alcohol did during the Prohibition era. This illicit industry yields immense financial gains for powerful Mafia families, both on a global and local scale.
Construction
The mafia generates revenue through its influence in the construction industry, particularly in places like NYC, where it exerts significant control. They often manipulate construction unions and own various construction firms. Even in an open market, mafia-owned construction companies, often non-union, can outbid competitors, allowing them to secure contracts. The Mob leverages its political connections to ensure that preferred companies receive local, state, or federal contracts.
Furthermore, the mafia establishes a system where contracts exceeding a certain value must be awarded to a designated group of companies, either owned by the mob or paid a tribute to their representatives. This lack of genuine competition enables these companies, whether mafia-owned or not, to inflate prices and engage in activities like stealing and reselling items.
Also Read: Italian Mafia Today: Does The Mafia Still Exist In Italy?