Key Takeaways:
- The NBA Board of Governors approved a revamped Draft Lottery system, the 3-2-1 Lottery, set to commence with the 2027 NBA Draft
- The new format extends lottery participation to 16 teams and adjusts both odds and pick restrictions to discourage tanking
- The 3-2-1 Lottery will remain in effect through the 2029 NBA Draft, with future rules to be decided for 2030 and beyond
Overview of the 3-2-1 Lottery Model
The NBA Board of Governors has agreed on an overhaul of the Draft Lottery framework, designed to address incentives driving teams to intentionally lose games in pursuit of higher draft selections. Set to debut in the 2027 NBA Draft, the “3-2-1 Lottery” will see participation increase to 16 teams – previously 14 – and will overhaul the allocation of lottery odds to balance competition.
The NBA Board of Governors today approved a new NBA Draft Lottery system designed to eliminate incentives for teams to prioritize their position in the Draft over winning games.
Full release: https://t.co/I42k5HeUV0
Additional information regarding the new system, including the… pic.twitter.com/o1QItNPIit
— NBA Communications (@NBAPR) May 28, 2026
Key modifications include:
- Teams failing to make the NBA Playoffs or NBA Play-In Tournament are granted three lottery balls, but the three worst-performing teams are “draft relegated” and draw only two balls, creating a stronger incentive to win down the stretch
- No. 9 and No. 10 Play-In seeds per conference collect two lottery balls, and the teams defeated in No. 7 vs. No. 8 Play-In matches receive a single lottery ball
- All 16 lottery balls are drawn to establish the order of the first sixteen selections in the opening round of the NBA Draft
Restrictions and Governance
- Teams designated as “draft relegated” are insulated from falling below the No. 12 pick, while all other lottery teams risk sliding to as low as No. 16
- No franchise may obtain the first overall draft pick in back-to-back NBA Drafts, nor secure a top-five selection across three consecutive years. These restrictions only govern the team’s own original pick, independent of trades
- Protections forbidding the attachment of top-12 through top-15 clauses to newly traded draft picks will be instated
- The NBA will exercise enhanced disciplinary powers to counter tanking, including the ability to reduce lottery odds, alter draft placement, and levy substantial financial penalties on teams found in violation
Implementation Timeline and Future Considerations
This newly approved system, a result of consultations with key league figures since October, will be operational for the 2027, 2028, and 2029 NBA Drafts. Decisions concerning procedures for the 2030 NBA Draft and beyond will be subject to a future vote by the Board of Governors.
