Brazilian President Luiz Inácio Lula da Silva has issued an executive order banning fixed-odds sports betting just days before the first round of the country’s presidential election. The measure, which took effect immediately upon signing, aims to address rising household debt attributed to gambling losses.

Under the order, new deposits into sports betting accounts are prohibited, and existing users have until October 5 to withdraw their remaining funds. While the ban is currently in force, it requires approval from Brazil’s National Congress to become permanent.

Authorities estimate that sports betting and other forms of gambling cost Brazilian society approximately 38.8 billion reais (about $7.4 billion) annually, contributing to financial strain among many households. The government’s action is part of broader efforts to mitigate the social and economic impacts linked to gambling-related indebtedness.

The timing of the order, coming just before the presidential election, has led to debate over its political implications. Supporters argue the measure is necessary to protect vulnerable citizens from predatory gambling practices, while critics suggest it may influence voter sentiment during a critical electoral period.

As the legislative process unfolds, the fate of the ban remains uncertain. Lawmakers will deliberate whether to enshrine the prohibition into law, weighing public health concerns against potential economic effects on the burgeoning sports betting industry in Brazil.