Wiktionary
mafia state
n. A system in which the government is tied with organized crime.
Wikipedia
Mafia state
This article refers to a systematic corruption of a government by major organized crime syndicates. For the greater connotation that literally means "rule by thieves", see Kleptocracy.
A mafia state is a state system where the government is tied with organized crime, including when government officials, police, and/or military take part in illicit enterprises. The term mafia is a reference to any organized crime groups strongly connected with the authorities.
According to the critics of the mafia state concept, the term "has now been so used and abused in popularized descriptions of organized criminal activity that it has lost much of its analytic value".
Mafia State (book)
Mafia State: how one reporter became an enemy of the brutal new Russia is a 2011 book by British journalist Luke Harding.