The VanEck Vectors Gaming ETF (NYSEArca: BJK) rallied Monday after the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA), which made sports wagering illegal outside of Nevada.

Ebullience toward BJK, the lone exchange traded fund dedicated to casino operators and gaming companies, was short-lived as the fund gave back some of its Monday gains on Tuesday.

The Supreme Court’s decision reverses the lower-court’s ruling that blocked New Jersey from moving forward with its plans. The Supreme Court’s decision also paves the way for other states to follow suit and allow gambling on athletic sporting events viewed by millions of Americans.

“The potential for a dramatic increase in sports betting caused some gaming related stocks to pop in trading on Monday, May 14,” said Markit in a note out Tuesday. “While the news was positive for some, the concern that this may actually hurt sports betting in Nevada weighed on the casino stocks, though that impact was certainly more muted than the upside seen elsewhere in the group. With the likelihood of increased legal sports gambling, even if Nevada loses share that share may be coming from a much larger pie.”

More details about SCOTUS ruling

How many states will open their doors to legalized sports wagering remains a question. Even in Nevada, legal sports getting accounts for just a fraction of revenue generate by casinos operating there. However, some cash-strapped states may consider moving forward with legalized sports betting to generate much-needed revenue.

“It remains to be seen how states will react to their newfound freedom, though this certainly opens the door to a large scale expansion of sports betting. Against the backdrop of a declining audience for NFL games last season, this would have to be seen as a positive for the league and, as a knock-on effect, good news for firms like Disney, whose ESPN unit has invested heavily in covering the NFL,” according to Markit.

Walt Disney Co. (NYSE:DIS) is a member of the Dow Jones Industrial Average and a major component in consumer discretionary ETFs, such as the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY).

States that have already passed legislation allowing sports bets, such as Connecticut, New Jersey, Pennsylvania, New York and West Virginia, could be among the first movers.

For more information on the consumer sector, visit our consumer discretionary category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.