A more thorough explanation:

Definition: Racket refers to an illegal activity that involves extortion of money through threats or violence. It can also refer to a fraudulent scheme or business.

• A group of gangsters demanding money from local businesses in exchange for "protection" is an example of a racket.
• A fraudulent investment scheme that promises high returns but never delivers is also a racket.

These examples illustrate how racket involves illegal and dishonest activities that aim to extract money from people through coercion or deception.