The bill was passed unanimously with 29 votes in favour, and it now advances to the Chamber of Deputies.
The bill defines a slot machine as any electronic system capable of receiving bets, which grants the user a time of use, and grants prize money through a randomly generated algorithm.
Due to slot machines being “games of chance”, they are banned outside of casinos which carry the necessary operating permit – which doesn’t yet extend to online slot machines.
The sanctions for breaking these rules include minor imprisonment and a potential fine of up to CLP$10.4m (£10,025/€11,694/US$13,911).
Within 180 days of the bill becoming law, potential vendors must have sent their licence applications to the Superintendency of Gambling Casinos and the Public Ministry.
This is the latest step in the Chilean governments attempt to regulate the gaming industry, with plans to legalise online gambling announced back in February.