Legal Framework for Games: Find out what could change in the gaming industry

On the 6th, Bill 2,796/2021, which establishes the legal framework for the gaming industry, was approved by the Senate’s Economic Affairs Committee (CAE). The bill will now be voted on in the Plenary and, if approved without amendments, will be forwarded to President Lula (PT) for approval.

Bill 2,796/2021, authored by Congressman Kim Kataguiri (União-SP), regulates the manufacture, import, marketing and development of electronic games in Brazil and had already been approved in the Chamber of Deputies in October 2022.

During the committee on the 6th, the rapporteur of the proposal, Senator Irajá (PSD-TO), made an addition to the text to formalize that games are not limited to entertainment services, but also have potential for commercial use.

“With this change, the sector will have the security to explore any commercial use related to electronic games. This is due to the fact that the game trade is not restricted to the acquisition of software licenses, but also includes the commercial use of brands associated with electronic games, through licensing for use in various other means, including holding tournaments.”explained the parliamentarian.

In addition to covering games for PC, consoles, browsers and mobile devices, the new legislation also regulates fantasy gamesdefined as “virtual disputes based on the performance of real athletes”. An example of this genre is the popular “Cartola FC”.

In addition to recognizing the development of electronic games as an investment in research and innovation, PL 2,796/2021 allows titles to be used for educational purposes in schools, for therapeutic purposes, training and simulations.

Furthermore, the project includes games under the same taxation rules applied to computer equipment, with the aim of reducing the tax burden on the industry.

Abragames repudiates PL

However, the Brazilian Association of Electronic Game Developers (Abragames) expressed its disagreement with the text of the law, issuing a statement of repudiation one day before the vote in the CAE. The entity classified the current project as an “incalculable setback”.

Official note from Abragames (Brazilian Association of Game Developers) about Bill 2.796/2021, whose agenda aims to create the legal framework for the electronic games industry. Read the full note in the photos! #PL2796 #PL2796NO pic.twitter.com/AndK7KybMd

— Abragames (@abragames) June 5, 2023

Abragames questioned why the text takes into account mainly the interests of fantasy gamesrather than covering all other types of games, which represent the majority of the industry.

The association defended the need for improvements to the project so that it truly represents the essential interests of the sector, such as reducing bureaucracy in the import of materials, government assistance at regional and federal levels for studios and concrete actions that drive the development of the Brazilian electronic games industry, without distinction of genres.