Brazil’s President Luiz Inacio Lula da Silva has issued an executive order banning online betting operations across the country, marking a significant policy reversal less than two years after the government established a legal framework to regulate the sector. The move, announced on Friday, comes amid a closely contested presidential election scheduled for October 4.

The ban applies nationwide and targets all online gambling activities, effectively halting a burgeoning industry in Latin America’s largest economy. The decision follows a period in which Brazil sought to develop regulations to govern online betting, aiming to capitalize on the sector’s potential economic benefits.

The announcement arrives as Lula faces a tight race against right-wing Senator Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro. Recent opinion polls indicate a competitive electoral environment ahead of the first-round vote, with Lula and Bolsonaro vying for political control.

While officials have not detailed the specific motivations behind the ban, analysts suggest it may be linked to the election cycle, reflecting concerns about the social and economic implications of online gambling or broader regulatory priorities under Lula’s administration.

The previous regulatory framework, launched less than two years ago, aimed to open the market to legal bettors and generate increased tax revenue. The abrupt policy shift raises questions about the future of the online betting industry in Brazil, affecting operators and consumers who had begun to engage with the newly legitimized sector.

Observers note that the ban could have wider implications for Brazil’s digital economy and regulatory landscape, particularly as the country prepares to navigate one of its most consequential elections in recent years. Both political camps have yet to explicitly comment on how the online betting ban fits into their broader campaign platforms.