Brazil adopts breakthrough Legal Framework for Games

Brazil has officially adopted a new law redefining video games in the country and establishing guidelines to guarantee and regulate its industry's future growth.

The bill was approved on May 3 by Brazilian president Luiz Inácio Lula da Silva after two years of debates and lobbying from games trade body Abragames, regional associations, and studios in the country.

"The Legal Framework for Games will foster sector growth, create jobs, combat illicit activities, and reduce tax burdens," said Senator Leila Barros, who carried the project alongside Senator Flávio Arns.

"With its approval, the Brazilian game industry will gain more visibility and legal certainty," she added.

Abragames' president Rodrigo Terra also commented: "We are celebrating a victory for Brazil, not just the game industry. The Legal Framework will strengthen the ecosystem of creation and production in one of the fastest-growing sectors worldwide, allowing the country to be truly recognized for its enormous potential in this crucial segment of the creative industry.

"The new law should attract more opportunities for robust private investments, both domestic and international, reduce bureaucratic hurdles for material imports, generate greater regional and federal support for studios, establish fundamental definitions for industry professionals, and pave the way for the creation of a specific National Classification of Economic Activities (CNAE) for the industry."

The games industry in Brazil has been in an upwards trajectory for the past few years. In 2023, the number of studios in the Brazilian games industry grew by 3.2%.