Brazil Introduces Landmark Legislation for the Gaming Sector

Brazil has enacted a groundbreaking law that redefines the video game industry in the country, establishing a framework to ensure its future development and expansion. The legislation was signed into law by President Luiz Inácio Lula da Silva on May 3, following a two-year period of discussions and advocacy efforts by the games trade association Abragames, regional organizations, and local studios. According to Senator Leila Barros, who spearheaded the project alongside Senator Flávio Arns, 'The Legal Framework for Games is poised to drive sector growth, generate employment opportunities, curb illicit activities, and alleviate tax burdens.' She further noted, 'With this law in place, the Brazilian gaming industry will benefit from increased visibility and legal clarity.' Rodrigo Terra, President of Abragames, welcomed the development, stating, 'This victory extends beyond the gaming industry, representing a triumph for Brazil as a whole. The Legal Framework will bolster the country's creative ecosystem, enabling Brazil to capitalize on its vast potential in this rapidly expanding sector of the creative industry.' The new law is expected to attract significant private investment, streamline the importation process for materials, foster regional and federal support for local studios, establish key definitions for industry professionals, and pave the way for the creation of a specialized National Classification of Economic Activities (CNAE) for the gaming industry. Over the past few years, Brazil's gaming sector has experienced steady growth, with the number of studios increasing by 3.2% in 2023.