For three years, attorney Fabio Cesnik, a partner at Cesnik, Quintino and Salinas Law Offices, has been following the Brazilian gaming industry in the United States. In March, for the first time, Brazil will have a booth at the main conference of the world, with a delegation of more than 40 companies. “In 2016, the gaming industry handled $670 million, and by 2021, the forecast is to reach $1.4 billion, according to research by Price,” says Cesnik. For him, investing in an industry incentive program could be a way out of the crisis in Rio de Janeiro.
When did your interest in the game market begin?
Two years ago, global surveys on entertainment pointed to market growth. So we started working with this industry. We follow public policies and legal issues with the Brazilian Association of Game Developers (Abragames). We also work on copyright and tax incentives. Games rarely get access to the Rouanet Law. We fought hard and now some projects have already gotten an incentive through the law.
And how is Brazil’s performance?
At the beginning, the Brazilian delegation consisted of seven companies. At the next event in March 2018, Brazil will participate not only with the largest delegation, with more than 40 companies, it will have for the first time a booth at the conference exclusively for companies that have games to sell. Prior to that Brazilian companies were at Game Connection America, a much smaller event because they had more projects than games. Among the companies, Aquiris, has developed a game that is in Apple’s top 10 global store. Price’s latest survey shows that in the entertainment market in Brazil, games will skyrocket the sector with the highest annual growth (165%), while the media and entertainment market will grow on average 4.6% per year. In 2016, the gaming industry handled $670 million and by 2021, the forecast is $ 1.4 billion.
Is Rio capable of developing this industry?
Brazil has a lot of talent. We have incredible game creators. Including in Rio de Janeiro. According to the latest survey of the Brazilian and Global Digital Games Industry made by BNDES in 2014, Rio comes in third place in the developer market behind Rio Grande do Sul and São Paulo. If Rio de Janeiro invested, it could be a great way out of their crisis. US companies are interested in investing in Brazil.
What are these companies interested in doing?
Creating a TV series produced in the United States. I can imagine having episodes of a big show, from $4 to $5 million, just in Rio de Janeiro. The production costs of equipment and the infra-structure for filming would really move the local economy. With games, the prospects is even brighter. And it has the involvement of local industry plus the “Law of Incentive” to help finance it, which could be a way out of Rio de Janeiro’s current economic woes.
What is missing to create this business environment in Rio?
Rio should have an aggressive policy of training developers, programmers, e-sports athletes and even managers. And a program to retain the talent. I have been in Los Angeles for a month and I am impressed by the interest in Brazil.
Read the article in portuguese here.