An acquaintance of mine goes by bars, small stores and coffee shops in his town. He tells them that he knows the neighbourhood pretty well, and that for the low, low fee of $400 a month, he can make sure that their store doesn't burn down or get trashed. It's cynical, reprehensible, and evil, but it's a pretty solid business model.
Nobody's saying it isn't a protection racket, just that it makes more sense for individual business owners to pay the extortion than to tangle with the mob, even if the net result is everyone having to pay extortion to a powerful mafia.