Pirate Territories

While the Allied Galactica tries to spread its proprietary brand of Civilization to the galaxy, a bastion of freedom stands outside of the AGF's rules. This messy, violent, deadly freedom is found in the Pirate Territories. A region of space spanning two quadrants, where many species that oppose the AGFs law and order have kept lawlessness only hemmed in by the tenuous understandings between the most powerful of the System Lords and the Galactica Admiralty.
In the territories, anything can happen to anyone. And while this leads to a reputation for being lawless, even called an anarchy by some, there is a modicum of government through the System Lords. System Lords rule regional planets and solar systems, and the High Table sets the rules of engagement, enforces its will, and maintains order. The territories are full of opportunities for the kind of work the Alliance sees as criminal and tasteless. Running Flare and Float, Escorting a party cruiser full of Narn pleasure slaves, getting paid to ambush a supply charter of medicine to a planet that didn't pay its dues, all of this work is approved by the High Table and the various System Lords. However, there are no true protections in the Territories; running drugs for a minor system lord leaves you open to being attacked and captured by their rivals, and escorting the pleasure slaves will not stop you from being enslaved by a pimp who wants fresh meat, and attacking a medical shipment will make you an enemy of any planetary citizen that survives long enough to come to hunt you down.
Even the implied protection of being in the service of a high-ranking and powerful system lord cannot last forever. No race is truly immortal, and a System Lord that dies can find even their most protected resources scavenged by young upstarts looking to climb the mountain of corpses to secure their position as a contender to the throne. While the High Table can enforce its rules and edicts, the justice of the High Table is often little comfort to the dead that thought themselves cared for by the leadership they paid tithe to. To keep their reputation intact, the High Table will often keep close eyes on System Lords with a significant territory that could be at risk, ensuring that if a Lord dies suddenly, they have first rights to carefully divide the territory among trusted lieutenants to hold and protect. If a lieutenant dies to an upstart trying to cannibalize territory, then the High Table may consider the upstart as a new candidate for leadership.

Government

The only body of government that encapsulates all Pirate Territories is the "High Table": twelve seats occupied by the Lords that command the most territory, led by Soddorom Pholiatius Gonnogoruus. They resolve power struggles between System Lords, set the rules of engagement, and discourse with the Allied Galactica and Sovereign systems. Though most of "civilized" space doesn't recognize the High Table as a true governing body, it's the hard power of their fleets and resources that bring Galactic leaders to heed them.
Law and manner of government (in the broadest sense of the word) are determined by regional System Lords. Most are broadly despotist, anarchistic, or totalitarian, but many borrow elements from existing political institutions (ex. capitalism, communism, and corporatism) for the basic functions of their societies. Should society collapse, the High Table deems it the System Lord's responsibility to maintain order. Or else they will bid their rivals to attack. In other instances, the High Table will install a new System Lord--usually one of that System Lord's own lieutenants.

I remember when I was an upstart like you, and I thought to meself: "Maaan, I'd sure like to get one of them seats at the High Table. That's where it's at. And ain't nobody gonna mess with me again." If I were to tell me--younger me, what it was really like once I made it? Man, oh man, I'd say kid, you got no idea how good you got it--I said no ice on that. As a young gun, you get to break fingers and heads, [and] you see your share of the Galaxy. Sure it's dangerous, but you got a bigger boss to answer to, showing you the way, handling shit when it gets rough, you get paid good, and have a little fun--Goddammit, too dry. But to sit at the High Table? It ain't all it's cracked up to be. You got so many Lords under ya, so many families to keep track of, planets you mix up, settle petty shit amongst the crime families. I mean at this point, I ain't even my own boss. A little lower baby, stuff both of 'em in those sweet cheeks, yeah, like that... It's honestly a living--nhhgh--hell. Nnghhhhh...yeaaaaah that's it, take all of Daddy's load. Y'know?
- Mo'ta, [former] System Lord of Asmodaeva