What changes with the approval of the Legal Framework for games?

Last Friday (3), President Luiz Inácio Lula da Silva, together with the Minister of Culture, Margareth Menezes and a team of ministers, sanctioned the bill 2796 / 2021, establishing the Legal Framework for Games. This regulatory framework begins a new era for the games market in Brazil, providing a regulated environment for game producers. O Legal Framework for Games establishes clear guidelines to foster the growth and protection of related activities to Brazilian electronic games.

The approval

The sanction of the Games Legal Framework, promulgated this Monday morning (6), was received with enthusiasm by Abragames (Brazilian Association of Digital Game Developers), being considered an advance for Brazil, in addition to its direct impact on the sector . This regulatory framework, the result of a collaboration between the private sector and the government, was signed by President Lula and came into force immediately, marking a new chapter for the gaming industry in the country. The full text of the legislation can be accessed here.

In the context of exponential growth in the gaming industry on a global scale, the new legislation appears as an ideal opportunity for Brazil to strengthen its presence in the international market. As Legal Framework for Games, improvements occur in the business environment, benefiting startups and large companies in the gaming sector and promoting innovation and competitiveness.

This strengthens the creation and production ecosystem of one of the fastest growing sectors in the world.

Rodrigo Terra, president of Abragames

President Lula announced on his social networks the sanction of the new legislation. With this standard, game development is now recognized as a cultural activity, becoming eligible for fundraising through the Audiovisual Law and the Rouanet Law.

What does the legal framework for the Games foresee?

The Games Legal Framework establishes a series of guidelines and principles to regulate and promote the electronic games industry in the country. This legislation aims to boost the technological and economic development of the sector and also provide a clear regulatory framework adapted to the contemporary needs of producers and consumers of digital games. See what changes after this approval:

• Definition and scope of electronic games: According to the new framework, the definition of electronic games is broad, including software such as computer programs, interactive images generated in response to the actions of the player, known as a gamer. The legislation covers several platforms, such as console games, virtual reality (VR), augmented reality (AR), mixed reality (MR) and extended or immersive reality.
• Legal security and education: The legislation clarifies the legal framework for digital games, offering greater legal certainty for companies and consumers. At the same time, it integrates electronic games as educational tools into the National Digital Education Policy, following international examples, to assist in the development of specific skills in educational environments. These games can be accessed by download, where the player downloads and saves the game on an electronic device, or by streaming, which allows playing without the need for download. It is important to highlight that the law explicitly excludes electronic gambling and betting with cash prizes from this classification.
• Tax incentives for independent developers: The Games Legal Framework introduces tax incentives for independent developers, seeking to stimulate innovation and cultural diversity in game production in Brazil. Furthermore, it simplifies and reduces bureaucracy in the import of equipment essential to game development, such as development kits (“dev kits”), and establishes a specific classification in the National Classification of Economic Activities (CNAE) for the games industry, ensuring more effective government support.
• Protection of minors: The legislative text also imposes on developers the responsibility of seeking solutions to protect children and adolescents from exposure to inappropriate content and online dangers. It also establishes the creation of reporting channels so that young people can report abuses in the digital environment.
• Brazil’s positioning strategy: The Games Legal Framework positions Brazil as a potential leader in the global digital games market, encouraging not only economic growth through technology, but also promoting a responsible industry adapted to contemporary cultural and social dynamics.

National impact

O Legal Framework for Games boosts the national production of electronic games by providing tax incentives, such as those provided for by the Rouanet Law, for independent projects. This policy promotes cultural diversity in game production and encourages the development of national content capable of competing in both the domestic and international markets.

With the recent implementation of legislation, the digital gaming sector anticipates a significant increase in investments and available opportunities. Márcio Filho, president of the Association of Digital Game Developers of the State of Rio de Janeiro and specialist in games and society, projects a highly positive scenario for the near future. He estimates that, over the next three years, the sector will receive between R$200 million and R$300 million annually in private investments. Furthermore, it is expected that total jobs in the sector could triple in the next decade, which would place Brazil in a prominent position in the global digital games production scenario, generating new opportunities and strengthening the national industry.

This strategic partnership between the private sector and the government aims to establish a solid foundation for the growth of the gaming industry, increasing security and operational efficiency, as well as attracting national and international investment and talent to Brazil.

Rodrigo Terra states that this strategy not only promotes the growth of the local industry, but also positions Brazil as an attractive hub for international investment in the field of digital games.

These initiatives are fundamental to transforming the Brazilian digital games industry, making it more capable of creating jobs, increasing tax collection and contributing to the country's GDP. The Games Legal Framework is seen as a strategic advance that positions Brazil as an important actor in the global digital games market, elevating its industry to a central pillar of the creative economy.

See also:

Sources: hugs, Agency Brazil, UOL

Text proofread by: Pedro Bomfim