DraftKings Flirting with Nasdaq 100 Index Inclusion
Posted on: December 3, 2024, 02:02h.
Last updated on: December 3, 2024, 02:28h.
The annual reconstitution process for the widely followed Nasdaq 100 Index (NDX) commenced last Friday and it’s possible that when the results are released on December 13, DraftKings (NASDAQ: DKNG) will get a promotion to that gauge.

DraftKings making the leap to the NDX largely depends on how many stocks Nasdaq decides to add and remove from the index. When the benchmark was rebalanced in December 2023, seven stocks were added and another seven were deleted.
For the gaming stock to join NDX in this year’s reconstitution, Nasdaq would likely have to expand the field from it which chooses additions. As of November 29, DraftKings was the ninth-largest Nasdaq-listed stock by market capitalization that isn’t an NDX member. The company has previously been close to joining NDX, but has yet to make the leap.
Based on its current market capitalization of $21.42 billion, DraftKings is larger than just two of the bottom 10 members of NDX. That implies Nasdaq might have to exceed last year’s seven additions for DraftKings to join NDX. As of today, the surest bets for NDX inclusion are Palantir Technologies (NASDAQ: PLTR) and MicroStrategy (NASDAQ: MSTR).
Pathway to DraftKings NDX Membership
Currently, DraftKings is a member of the NASDAQ Next Generation 100 Index, which is something of a proving ground for potential NDX members.
The Index is comprised of securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index,” according to Invesco.
DraftKings is one of four gaming stocks in the next-generation index. The other three are, in order of weight, Wynn Resorts (NASDAQ: WYNN), Churchill Downs (NASDAQ: CHDN), and Caesars Entertainment (NASDAQ: CZR). DraftKings is the only member of that quartet with a credible chance of earning an NDX promotion this year.
While consumer discretionary — the home sector for gaming equities — maintains the third-largest exposure in NDX, no gaming stocks currently reside in the gauge. FanDuel parent Flutter Entertainment (NYSE: FLUT) and Las Vegas Sands (NYSE: LVS) are the two largest US-listed gaming stocks by market value, but they trade on the New York Stock Exchange (NYSE), making them ineligible for NDX membership.
NDX Inclusion Could Be Boon for DraftKings
Joining NDX would be a major milestone for DraftKings because the stock currently isn’t a member of either that gauge or the S&P 500.
Should the online sports betting giant make the leap to the Nasdaq 100, it would open the doors to more active and passive funds that benchmark to NDX buying shares of DraftKings. Today, DraftKings is held by just 108 exchange traded funds (ETFs), according to the ETF Research Center. That figure would increase upon inclusion in the NDX.
When new stocks join an index, active managers and passive funds that benchmark to the gauge must buy shares of the freshly added name. That means if DraftKings joins NDX, it would also join the Invesco QQQ (NASDAQ: QQQ) and the Invesco NASDAQ 100 ETF (NASDAQ: QQQM) – ETFs with more than $358 billion in combined assets under management.
Related News Articles
Entain CEO Says Company Is More Buyer than Seller
PointsBet to Engage with DraftKings in Takeover Talks
DraftKings Surges After Again Lifting 2023 Guidance
DraftKings Hits New 52-Week High Following Investor Day
Most Popular
Dallas Mavericks Aren’t Moving to Las Vegas, Say Adelson, Dumont
VEGAS MYTHS BUSTED: Disney is Buying Circus Circus
A’s Come Up Short on Las Vegas Stadium Parking Spaces
Illinois Casino Par-A-Dice to Be Replaced by Peoria Brick-and-Mortar Property
Most Commented
-
Pennsylvania Township Commissioning Impact Study for Casino Near Penn State
January 24, 2025 — 54 Comments— -
Famous Dave’s Restaurateur Pitches Redevelopment of Al Capone Hideout
February 10, 2025 — 13 Comments— -
VEGAS DINING NEWS: MGM Resorts Considers Charging for Window Tables
January 11, 2025 — 13 Comments— -
Luxor Las Vegas Guest Sues for Shockingly Bad Experience
January 14, 2025 — 9 Comments— -
Brightline Revises One-Way Fare for LA to Vegas High Speed Train
January 22, 2025 — 9 Comments—
Last Comment ( 1 )
So what is the exact date when Draftkings is added? Is it December 13 or another date in the future?