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

With a market capitalization of $21.42 billion, DraftKings currently ranks as the ninth-largest Nasdaq-listed stock not included in the NDX. The company exceeds the market cap of only two existing NDX bottom-10 members, suggesting multiple additions would be needed for DraftKings to secure inclusion.

Key factors affecting potential inclusion:

• Last year's reconstitution added and removed seven stocks
• Palantir Technologies (PLTR) and MicroStrategy (MSTR) are considered more likely additions
• DraftKings currently belongs to the NASDAQ Next Generation 100 Index
• No gaming stocks are currently in the NDX

Benefits of potential NDX inclusion:

• Increased exposure to institutional investors
• Access to larger pool of ETFs and index funds
• Potential inclusion in major ETFs like Invesco QQQ (QQQ) and Invesco NASDAQ 100 ETF (QQQM)
• Combined assets under management exceeding $358 billion
• Currently held by only 108 ETFs, with room for significant growth

DraftKings remains the only gaming stock among its peers (Wynn Resorts, Churchill Downs, and Caesars Entertainment) with a realistic chance of NDX promotion this year. The company's inclusion would mark a significant milestone, potentially driving increased institutional investment and market visibility.

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