The NBA Board of Governors approved extensive reforms to the draft lottery on May 28, 2026, aiming to discourage teams from tanking by reworking the lottery system [1, 2, 3, 4]. The vote passed 29-1, with the Memphis Grizzlies casting the only dissenting vote [1, 2, 3, 4].
Starting with the 2027 NBA Draft, the draft lottery will expand from 14 to 16 teams eligible for selection [1, 2, 3, 4]. The new system introduces a '3-2-1' format for assigning lottery balls, based on regular-season standings. Teams ranked 4th to 10th worst (excluding the bottom 3) will each receive three lottery balls. The three worst teams will receive only two balls apiece, lowering their odds for the top pick to about 5.4%, compared with roughly 8% for those slightly better teams [1, 2, 3, 4].
Under the reforms, the three worst teams are guaranteed to pick no lower than 12th overall, preventing extremely low placements that could encourage losing on purpose [1, 2, 3, 4]. The league also banned teams from winning the No. 1 pick in consecutive years and from securing top-five picks three seasons in a row [2, 3, 4].
The NBA commissioner gained expanded disciplinary authority under the new rules, including fining teams up to $10 million, altering draft positions, and adjusting lottery odds to punish tanking behaviors [4, 5].
NBA Commissioner Adam Silver endorsed the reforms, stating in March 2026 that "it seemed unanimous in the room that we needed to make a change and we needed to make a change for next season. Incentives need to be fixed. We will fix them." [6]. An NBA statement added the changes are "designed to eliminate incentives for teams to prioritize their position in the Draft over winning games," and to "flatten lottery odds among the teams." [1]
Despite broad approval, some voices expressed concern. One source warned the new system "may shift incentives to mediocrity and create reasons for teams near the playoff bubble to lose deliberately to improve draft odds" [7].
The 2026 NBA Draft on June 23 remains under the old lottery rules, with the Washington Wizards set to pick first after having the worst record in the 2025-26 season [1, 8]. The new '3-2-1' lottery system reforms will be implemented beginning with the 2027 Draft and are planned to continue through at least 2029 [2, 4].