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Legal Framework for Electronic Games advances towards Presidential approval

The Bill of Law enables game development companies to receive support from the Rouanet Law, aiming to stimulate the national production of electronic games

On April 9th, the Chamber of Deputies approved the Bill of Law n. 2,796/2021, establishing the Legal Framework for the Electronic Games. The Bill of Law, currently awaiting Presidential sanction, represents a significant step towards fostering the growth of the sector in the country.

The Bill of Law addresses issues such as import, marketing, and development of games. In addition, it recognizes the use of games for educational, therapeutic purposes, and even for vehicle and machine driving training.

An important initiative of the Bill of Law is the possibility for developers to receive support from the Rouanet Law, in order to incentivize the national production of electronic games.

In addition, the Bill of Law proposes the inclusion of a new article in the Audiovisual Law, granting a 70% reduction in the tax due on remittances abroad when these are related to the exploitation of electronic games or licenses, provided that taxpayers invest in the development of national and independent game projects.

Commercial promotions, lottery modalities, or any type of game that offers some type of bet, with prizes in real or virtual assets, or that involves random result or prognosis, will not be considered electronic games by the Bill of Law. Therefore, the agents involved in the production or distribution of these activities will not be able to benefit from any of the advantages defined by Bill of Law.

It is important to highlight that the Legal Framework of Electronic Games dedicates an exclusive chapter to the protection of children and adolescents. The goal is to ensure that the conception, design, management, and operation of electronic games are guided by the best interest of the child and adolescent. In addition, the Legal Framework imposes a restriction on making purchases and commercial transactions by children within the games, unless there is consent from the parents or guardians.

According to  New Zoo’s 2023 Global Games Market Report, Brazil is the thirteenth largest games market in the world. It is even projected that by 2025, electronic games in Brazil will deploy approximately 3.5 billion dollars.

The approval of the Bill of Law represents an opportunity to further boost the economic and creative growth of this sector. By encouraging the national production of games, Brazil strategically positions itself to take advantage of the potential of this expanding market, consolidating the country as an important player in the global gaming scenario.

KLA’s Media & Entertainment and Technology team is available to provide support and guidance to companies interested in exploiting the opportunities in this sector.

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