The gaming industry has always had to fight for recognition and support, often facing challenges in accessing the same cultural and government recognition as other forms of entertainment. However, the potential for job creation and economic growth in the sector is significant. Rodrigo Terra, the president of Abragames, highlighted the importance of government recognition and tax breaks in fostering a vibrant game industry in Brazil.
Brazil’s game industry has been closely monitoring political movements in other countries, including Canada and South Korea, which have long offered tax breaks to game developers. It took five years of research and preparation before the bill was ready to be presented to Congress in Brazil. The size of the game market in Brazil is substantial, with a revenue of $2.3 billion in 2021 and a consistent annual growth rate of 5%. The country is home to over 1,000 game studios and employs 12,000 workers, making it the 12th-largest game industry in the world.
In terms of player base, Brazil is a significant market as well. In 2022, it ranked as the fifth-largest market for gamers, with 102 million players. Despite a contraction in the global game industry by 5%, Brazil’s game industry grew by 3.2% in that year. Approximately 80% of the population plays games, with PC and console gamers averaging 5.12 hours of gameplay per week.
The bill’s authors, Senators Leila Barros and Flávio Arns, consulted with various stakeholders in the game development industry, including Abragames, during the drafting process. The political push for recognition and support for the gaming industry gained momentum in 2021, following attacks on gaming from conservative politicians.
One of the driving forces behind the push for recognition is the industry’s desire to qualify for government support, such as tax breaks. Once officially recognized as an industry, game developers can lobby for favorable policies that incentivize job creation and economic growth.
The bill’s journey through the Senate has been a winding one, starting in 2022 and undergoing various revisions. However, if the current version of the bill stands, it will establish a legal framework that recognizes games as an industry in Brazil. This recognition aims to dispel misconceptions about video games and open up new opportunities for economic development in the sector over the coming decades.
Overall, Brazil’s legal framework for the gaming industry marks a significant milestone in the country’s recognition of games as a legitimate industry. With strong revenue growth, a large player base, and a thriving community of game developers, Brazil is poised to become a major player in the global gaming market. The government’s support through tax breaks and official recognition will undoubtedly fuel further growth and innovation in the industry.
