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The adrenaline rush while gambling leaves an individual with a false perception of endless opportunities to win big, but in order to win big, you must play big.

But though nearly nine of 10 Americans have gambled during the lifetimes and the gaming industry is worth more than $240 billion, the industry has declined in the past two decades, with revenue down in Nevada, for instance, 254% between 1984 and 2013.

Part of the reason is the millennial generation, which doesn't seem interested in visiting casinos and spending their time playing slot machines or games based on pure luck.

However, the new era of gambling is on the cusp of a wildfire, with technologically enabled gambling that allow participants to play poker, blackjack and daily fantasy sports games on the rise. Services such as Bovada, DraftKings, FanDuel and PokerKing are making their name in the skill-based gaming market specifically targeting the millennial generation.

Millennials are the first generation that was born into and grew up with smartphones, advanced technology and interactive gaming experiences. Imagine the market for games such as Halo and Clash of Clans, where the target is to acquire weapons and hunt down the enemy, combined with gambling.

Gregg Giuffria, chief executive of G2 Game Design, has said, "We have solved the problem of blending these two. We're going to demonstrate that you will have the ability to play a game that has never been in existence before, a blend of chance and skill."

In addition, sport fanatics can participate in daily fantasy leagues on websites such as DraftKings and FanDuel. Many of those who participate in these leagues use analytical research to provide the highest chances of winning.

Meanwhile, a separate market that has gained popularity among millennials is online casino websites such as PokerKings and 10bet. These services allow individuals to play casino games on their cellphones.

This means that no matter where you are, within a few clicks, you are on your way to playing poker for real money.

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TheStreet Recommends

So how are the big publicly traded gaming companies responding? Some casinos have been reducing the amount of space devoted to traditional gambling.

Wynn Resorts (WYNN) , for instance, in January opened its Encore Player's Club in Las Vegas, which has a separate space for gamblers to hang out with their friends and watch sports events, and is targeted at millennials.

The company's stock has outperformed beyond expectations recently, rising more than 65% since reaching a 17-year intraday low of $49.95 on Jan. 14. It is trading above both the 50-day average and 10-week line.

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Investors predict that this hot streak will continue, as Wynn Palace is set to open in Macau around June. The company's market share is predicted to grow to between 13% and 14% from about 10% as a result.

Investing in Wynn Resorts therefore is a smart gamble to make that could pay off big time.

Another company, Las Vegas Sands (LVS)  last year made minor changes to a casino in Pennsylvania in an attempt to attract millennials. The company featured a "stadium" of 150 live dealer electronics games at its Sands Bethlehem location.

The company's stock has surged 47% from its Jan. 20 low and trades now at about $52. Las Vegas Sands boasts expanding profit margins, positive growth and a reasonable amount of debt.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.