DraftKings could join the Nasdaq 100 Index (NDX) following the annual reconstitution process that began last Friday, with final results expected on December 13.

Currently holding a market capitalization of $21.42 billion, DraftKings exceeds only two of NDX's bottom 10 members. The company's inclusion depends on how many stocks Nasdaq decides to add and remove, with last year's reconstitution seeing seven additions and seven deletions.

DraftKings presently belongs to the NASDAQ Next Generation 100 Index, alongside gaming companies Wynn Resorts, Churchill Downs, and Caesars Entertainment. Among these, DraftKings stands as the only viable candidate for NDX promotion this year.

Palantir Technologies (PLTR) and MicroStrategy (MSTR) are considered the most likely candidates for NDX inclusion. For DraftKings to join, Nasdaq would likely need to expand its selection criteria beyond last year's seven additions.

Joining the NDX would mark a significant milestone for DraftKings, as the company isn't currently part of either NDX or the S&P 500. Such inclusion would attract more investment from active and passive funds that track the NDX.

The benefits would include:

• Increased exposure to institutional investors
• Addition to major ETFs like Invesco QQQ and Invesco NASDAQ 100 ETF
• Access to over $358 billion in combined assets under management
• Expansion beyond current 108 ETF holdings

Currently, no gaming stocks are present in the NDX, despite consumer discretionary being the third-largest sector in the index. Major gaming companies like FanDuel parent Flutter Entertainment and Las Vegas Sands trade on the NYSE, making them ineligible for NDX membership.

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