DraftKings (NASDAQ: DKNG) may join the prestigious 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 outside the NDX. The company exceeds the market cap of two existing NDX members but faces competition from stronger candidates like Palantir Technologies (NASDAQ: PLTR) and MicroStrategy (NASDAQ: MSTR).

DraftKings currently holds membership in 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.

Inclusion in the NDX would mark a significant milestone for DraftKings, potentially leading to increased investment exposure through:

• Access to new active and passive funds tracking the NDX
• Inclusion in major ETFs like Invesco QQQ and Invesco NASDAQ 100 ETF
• Expanded institutional investment opportunities

The gaming company's promotion largely depends on how many stocks Nasdaq decides to add and remove during this year's reconstitution. Last year's rebalancing saw seven additions and seven deletions, suggesting DraftKings might need an expanded field to secure its spot in the index.

While the consumer discretionary sector maintains the third-largest exposure in NDX, it currently includes no gaming stocks, as major competitors like Flutter Entertainment (FanDuel's parent) and Las Vegas Sands trade on the NYSE.

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