The NBA's board of governors has overwhelmingly approved a significant overhaul of the league's draft lottery format, a move set to take effect starting with the 2027 NBA draft. This decision, passed with a 29-1 vote (only the Memphis Grizzlies dissented), is primarily aimed at combating the rampant problem of teams intentionally losing games, or 'tanking,' to secure better odds for the top draft pick. The new system expands the lottery from 14 to 16 teams, now including the 8-seed from each conference's playoff picture, and introduces a series of anti-tanking measures to disincentivize finishing with the worst records.

Central to the changes is the new "3-2-1 lottery" system, a scheme developed over several months through discussions with key stakeholders. This format redefines the distribution of ping-pong balls: teams with the three worst records will each receive two ping-pong balls, while teams ranked fourth through 10th worst will each be allocated three balls. Moreover, the three worst teams will now have a floor of picking no lower than 12th in the draft, further reducing the incentive to perform poorly. The Nos. 9 and 10 play-in seeds in each conference will receive two lottery balls each, and the losers of the 7-8 play-in games will be given one lottery ball apiece. This differs markedly from the previous system, where only the bottom four records had drawn odds, and other lottery teams were ordered by inverse record. Under the new proposal, all 16 teams will participate in the drawing, which sources suggest will likely be a live event next year to build suspense.

In addition to the revised odds, the new format implements crucial restrictions on draft pick accumulation. Teams will no longer be able to secure the No. 1 pick in back-to-back years; for instance, the Washington Wizards, if they were to win the lottery this year, would be ineligible for the top selection in 2027. Furthermore, teams are prohibited from having a top-five pick for three consecutive years, a rule that specifically impacts the Utah Jazz in 2027. The Jazz's pick, already traded to the Grizzlies, can finish no higher than sixth in next year's draft, assuming Utah is in the lottery.

To bolster its anti-tanking efforts, the league will also wield expanded disciplinary authority. This includes the power to reduce teams' lottery odds, modify their draft positions, and impose significant fines on offending teams. Another important change involves pick protections; going forward, teams will be unable to protect picks in the 12 to 15 slots, a measure designed to prevent teams from creating a guaranteed floor for traded draft assets, though previously agreed-upon protections will remain valid.

The new lottery format includes a sunset provision, meaning it will expire after the 2029 season. This timing aligns with an opt-out clause in the current collective bargaining agreement, providing the NBA with the flexibility to either extend the system if it proves effective or replace it with a new approach. Discussions have already hinted at potential future changes, such as a