DraftKings (NASDAQ: DKNG) could potentially join the Nasdaq 100 Index (NDX) when the annual reconstitution results are announced on December 13. The sports betting company's inclusion depends largely on how many stocks Nasdaq decides to add and remove from the index.

With a current market capitalization of $21.42 billion, DraftKings is larger than only two of the bottom 10 NDX members. The company would likely need Nasdaq to exceed last year's seven additions to secure a spot. Currently, Palantir Technologies (NASDAQ: PLTR) and MicroStrategy (NASDAQ: MSTR) are considered more likely candidates for inclusion.

DraftKings is presently a member of the NASDAQ Next Generation 100 Index, which serves as a proving ground for potential NDX members. Among gaming stocks in this index, including Wynn Resorts, Churchill Downs, and Caesars Entertainment, DraftKings is the only one with a realistic chance of NDX promotion this year.

NDX inclusion would mark a significant milestone for DraftKings, as the company isn't currently part of either the NDX or S&P 500. Such inclusion would:

• Increase exposure to active and passive funds tracking NDX
• Expand beyond its current presence in 108 exchange traded funds (ETFs)
• Grant access to major ETFs like Invesco QQQ and Invesco NASDAQ 100 ETF, which manage combined assets exceeding $358 billion

The consumer discretionary sector, which includes gaming stocks, holds the third-largest position in NDX, though no gaming stocks are currently included. 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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