Video Games, DFS and eSports Enter a New Legal Industry in Brazil | Media Pyro


Posted: November 16, 2022, 08:05h.

Last update on: November 16, 2022, 08:05h.

Video games, daily fantasy sports (DFS) and eSports are on the way to gain more popularity in Brazil and have become very popular. The bill that is currently being made will recognize them as part of the official “industry”, which will create new jobs and tax benefits for companies in the area.

Intel Extreme Masters Rio Major 2022
Fans will be watching the Intel Extreme Masters Rio Major 2022 in Brazil this month. Video games, eSports and DFS are about to enter a legal profession in the country. (Photo: ESL Pro)

The new framework is in the Senate, and the chamber is expected to approve it this week. Brazil is one of the largest markets for the development of games and software, but the companies that can help it grow are not interested in the government’s approach.

Because Brazil shows the category of video games and DFS, it falls into the same category as slot machines. Thus, the tax rate is higher on scale, reducing innovation and growth.

It’s a new era for gaming

When the bill is approved, the development of electronic games will be considered research and technology. This gives companies access to tax benefits.

The Brazilian Association of Fantasy Sports (ABFS, for its Portuguese acronym) says the measure will lead to 5,000 new jobs and unemployment. These will appear in the industry before the end of next year, and only in the DFS area. It means creating jobs for others.

Gaming revenues may double by 2026, reaching R$120m (US$22.5 million), and. This makes Brazil the third-largest market in this sector, behind the US and India.

The Senate will discuss a bill that has been alive for months. At first, it covered console and PC games, but later expanded to include eSports and DFS.

The popularity of eSports continues to rise. The results of innovation Game Brazil survey, an annual survey of online gaming consumption in Brazil, showed that 81.2% of players in the country have heard of eSports. This is an increase of 16.9% compared to last year.

Brazilian Politics Be Smart

Brazil is in the process of transitioning from the government of Jair Bolsonaro to that of Luiz Inácio Lula da Silva after the recent election. It was a slow process, delayed by post-election protests.

The result is less willingness to address gambling issues at the highest level of government, and more politicization. At the height of that was the effort to change Brazil’s constitution to give da Silva more money to carry out his campaign.

That amendment must find support by Dec. 15, the deadline for Congress to vote on the 2023 budget bill, if it is to survive. As a result, other legal issues are on the back burner until then.

Moreover, the current government has begun to falter since the bitter defeat. Bolsonaro kept a low profile, canceling his schedule and remaining silent on social media as he gained strength before his death.


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