On May 3rd, 2024, Brazilian President Lula da Silva sanctioned Law #14,852/2024, which establishes a new regulatory framework for the electronic gaming industry in Brazil.

The law defines electronic games as follows: 

1. Interactive audiovisual works where images are modified in real-time based on user interactions with the interface.

2. Central devices and their accessories, whether for private or commercial use, specifically intended for electronic game execution.

3. Software implemented as mobile applications or websites, including video games and games using virtual reality, augmented reality, mixed reality, and extended reality, accessible via download or streaming.

It is important to note that gambling games, including sports betting, online poker, and others involving monetary awards, are excluded from this legislation.

The primary objectives of this law are to establish clear regulations and guidelines aimed at combating illegal activities, protecting consumers, ensuring the privacy and rights of minors, and promoting economic growth.

A significant feature of the law is the introduction of tax incentives. It establishes that the government shall issue tax regulations to encourage innovation within the sector. Moreover, investments in electronic games are to receive the same considerations as those in research and development, innovation, and cultural activities, which includes various fundraising opportunities for the industry.

Additionally, the law supports the professional development within the industry by promoting incentives for courses that focus on the technical and technological specialization of the workforce.

Furthermore, the legislation includes several provisions aimed at protecting children and teenagers. It requires the industry to implement measures to mitigate risks to minors and mandates game developers to ensure their products do not promote discrimination, exploitation, violence, cruelty, or oppression, particularly in multiplayer settings. The law also mandates that purchases made by minors within games be restricted by default to ensure parental consent prior to any transaction.

With the enactment of this law, Brazil positions itself alongside other nations with specific regulations for the electronic gaming industry. The expectation is that the new legal framework — particularly the tax incentives and possibilities of fundraising — will attract more investment, thereby stimulating the sector’s growth, creating jobs, and contributing to the national economy.  

 

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