Outside of the gaming framework, what about fantasy games in Brazil?
Written by :
Heloisa Vasconcelos
Bill No. 2,796/2021, which establishes the legal framework for electronic games, was approved by the Federal Senate and the Chamber of Deputies and now only awaits presidential sanction to become law.
The text initially provided for the inclusion of fantasy games in the legislation, but the category was removed during the vote in the Federal Senate .
The modality, in which players field imaginary or virtual teams of real players from a professional sport, is mentioned in Law No. 14,790, which regulates the fixed-odds betting market in Brazil.
For experts, the separation between fantasy games and other games covered by the legal framework is positive and brings greater legal security to both sectors.
Aligned output
Marcelo Mattoso, partner at Barcellos Tucunduva (BTLAW) and specialist in the Games and eSports Market, explains that, although fantasy games also have gameplay tools, they were “out of step” with the legislation of the legal framework for games.
The idea behind the legislation was to regulate the manufacture, import, marketing, development and commercial use of electronic games. The scenario is different from fantasy games, which are more similar to the betting market.
“ It would be harmful to mix these two aspects because they are different markets, with different rules. Mixing them brings burdens to both markets. ”
Marcelo MattosoExpert in Games and eSports Market
According to the president of the Brazilian Fantasy Games Association (ABFS), Rafael Marchetti, the removal of the category from the gaming framework was aligned with the project’s rapporteur in the Senate.
This is because the modality was included in article 49 of Law 14,790. The text of the law provides a definition for fantasy and distinguishes it from games of chance.
“As article 49 is considered by the industry to be a sufficient article, this was basically what was proposed within the framework of games, it didn’t make sense to have two standards saying the same thing”, he states.
For Livia Heringer, lawyer at Ambiel/Belfiore/Gomes/Hanna Advogados and specialist and master in Tax Law from USP, there is no need for a new law for the sector.
“The sector seems to be satisfied with the regulations established by Law 14,790/2023 for the activity and, unless new needs arise, I see no reason for a new bill specifically dealing with this modality”, he highlights.
Expectations for the sector
Having been legalized through the betting law, the fantasy sector has positive expectations for the coming years. The ABFS predicts a growth of 120% by 2026.
“ With the regulation, we are already beginning to see more foreign capital interested in fantasy companies, more companies interested in investing. ”
Rafael MarchettiPresident of ABFS
Today the sector is still very focused on football, but Rafael Marchetti plans to expand into other sports, such as basketball, volleyball and, mainly, eSports.
What does the law say?
The betting law contains an article that clarifies that the activity of developing or providing services related to fantasy sports does not constitute a lottery modality. Therefore, authorization from the government for this modality is not required.
- Virtual teams must be made up of at least 2 (two) real people, and the performance of these teams depends largely on the knowledge, statistical analysis, strategy and skills of the fantasy sport players;
- The rules are pre-established;
- The guaranteed prize amount is independent of the number of participants or the amount collected through the registration fees; and
- The results do not arise from the isolated result or activity of a single person in real competition.
The law adds that the provisions on taxes on bettors also refer to fantasy games.
In the article, fantasy is described as “an electronic sport in which disputes occur in a virtual environment, based on the performance of real people”. To qualify, it is necessary that: