Some opposition members walked out of the chamber before the vote in protest at the bill, which comes after years of delays linked to worries about gambling addiction and organised crime.
"The bill passed through the chamber and will be sent to the upper house by today," a parliamentary spokeswoman said.
The proposed legislation is all but assured to pass the upper house, which is also controlled by the ruling Liberal Democratic Party (LDP).
Prime Minister Shinzo Abe and his party are betting that casinos can support tourism after Tokyo hosts the 2020 Olympics -- and pump some life into their faltering bid to boost the world's number three economy.
More From This Section
Supporters have said casinos could bring billions of dollars worth of investment, in a challenge to Asian gaming titan Macau.
Japan has long been viewed as a massive gaming market due to its wealthy population, close proximity to China and appetite for other forms of legal gambling, including horse and boat racing.
Osaka, Tokyo and nearby Yokohama have all been cited as possible locations for major resorts that would host casinos, hotels, convention centres and entertainment venues.
Brokerage CLSA estimates the casino market could be worth upwards of USD 30 billion a year, in addition to the sums already being spent.
"The world's leading operators regard Japan as a holy grail given the potential market size," Jay Defibaugh, a senior research analyst at CLSA, said in a report.