Organisers of large bingo competitions will be allowed to pay out up to three-quarters of their takings in prize money.
It follows a vote in the Dáil last night.
The Government had wanted to impose a prize money cap of 50%.
However, an amendment proposed by Sinn Féin TD Martin Kenny, seconded by Independent TD Denis Naughten, was supported by the Government and other parties.
It means that organisers of large bingo competitions will be allowed to pay out up to 75% of their takings in prize money.
For smaller bingos, where the total prize money is less than €5,000, there is no change in the current law.
They will continue to be able to operate as they have done to date.
A proposal to ensure that a minimum of 25% of the proceeds of bingo takings go to charities remains unchanged.
All operators must contribute to charity as a condition of their permit or licence.
The bill has been sent to the Seanad for further consideration.
The Save our Bingo campaign group said there was concern that the original proposals to reduce the amount of money paid out on a win would force many bingo halls to close.
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Mr Kenny said he welcomed the outcome of the Dáil vote, adding that "the vast majority of smaller, community-run bingo games will not be affected by this legislation".
Speaking on RTÉ's Morning Ireland, Mr Kenny said there was a lot of confusion and misinformation around the issue earlier this week.
Bingo is, he said, a unique part of Irish culture and this was recognised in the Dáil.
The Save Our Bingo Campaign welcomed the amendments made to the bill.
Spokesperson Deirdre Doherty said ''last night was a stepping stone to a great victory for the bingo players of Ireland".
In a statement Ms Doherty said Minister Stanton was "forced to listen to our grave concerns" and they will be "watching this process carefully to ensure that the interests of the Bingo players of Ireland continue to be represented".
Earlier this week, a protest was held outside Leinster House over plans to change the law.
In a statement issued this afternoon, the Department of Justice and Equality said the core concern of the Government had been to ensure that charities receive a fair share from the bingo operators who act as their agent.
"Bingo is an important social game which supports communities, and there was never any intent to impact on people who play bingo or to stop people from playing bingo," the statement added.
It said the Department will continue to work on the comprehensive package of gambling reforms which will introduce a new licensing system for all gambling activities and create an independent gambling regulator.
