Brazil’s president approves legislation establishing legal framework for digital gaming industry in Brazil

Brazilian President Luis Inácio Lula da Silva has signed into law the legal framework for the electronic games industry in Brazil, marking a significant milestone for the country’s gaming sector. The new law establishes a legal basis for gaming activities in Brazil and aims to promote the growth of the market in the country.

Rodrigo Terra, president of Abragames in São Paulo, Brazil, expressed his excitement about the official recognition of games as an industry by the government and the potential for tax breaks to support the vibrant game industry in the future. The Brazilian industry has been closely following global trends, particularly in countries like Canada and South Korea, which have long-standing tax breaks for the gaming industry.

According to a recent survey, Brazil generated $2.3 billion in revenue in 2021 and is experiencing a 5% annual growth rate. With over 1,000 game studios and 12,000 workers, Brazil currently ranks as the 12th-largest game industry in the world. In 2022, Brazil was the fifth-largest market for gamers with 102 million players, showcasing a 3.2% growth rate despite a 5% contraction in the global game industry.

The new law is a result of proactive efforts by Brazilian senators Leila Barros and Flávio Arns, who consulted with various stakeholders in the game development industry, including Abragames. The industry’s lobbying efforts have been focused on gaining official recognition to qualify for government support and tax breaks, ultimately aiming to create more job opportunities and boost economic development in the sector.

With the legal framework in place, the Brazilian gaming industry is poised for further growth and development, shedding misconceptions about video games and paving the way for a more organized and thriving sector in the years to come.