NBA Overhauls Draft Lottery with "3-2-1 System" to Combat Tanking

"The behavior was worse than we've seen in recent memory. The current system's incentives are not working."
— NBA Commissioner Adam Silver

The Washington Wizards won the 2026 NBA Draft Lottery, selecting first overall in what was the final lottery conducted under the previous system. The league has now voted overwhelmingly to implement a new format—the "3-2-1 Lottery"—set to take effect for the 2027 draft.

Background: The Tanking Problem

The NBA's annual draft system grants teams with poorer regular-season records higher chances to select top amateur talent. This structure has led some teams, particularly those not contending for the playoffs, to pursue strategies resulting in a worse record to secure a better draft pick.

The 2026 draft class was noted for its potential, featuring three top-tier prospects: AJ Dybantsa, Darryn Peterson, and Cameron Boozer.

Commissioner Adam Silver stated the league was actively seeking solutions, noting that the behavior was "worse than we've seen in recent memory" and that the current system's incentives were "not working." The league's Competition Committee re-examined the draft lottery system, and multiple proposals were presented to NBA owners and the Board of Governors.

Incidents and Fines

During the 2025-26 season, the league fined the Utah Jazz $500,000 for "conduct detrimental to the league" after sitting star players Lauri Markkanen and Jaren Jackson Jr. during fourth quarters of close games. The Indiana Pacers were also fined $100,000 for holding out multiple players who were medically cleared to play.

Jaren Jackson Jr. was later ruled out for the season after a growth was discovered in his knee during a physical related to his trade to Utah. The condition required surgery. Owner Ryan Smith publicly disagreed with the fine. The Jazz's strategy aligned with their goal to retain a first-round draft pick protected in the top eight.

The New "3-2-1 Draft Lottery System"

On Thursday, the NBA Board of Governors voted 29-1 to approve a new draft lottery system titled the "3-2-1 Lottery," which will apply to the 2027, 2028, and 2029 drafts. The Memphis Grizzlies were the sole dissenting vote, due to their ownership of the Utah Jazz's 2027 first-round pick.

Key Changes

Expanded Lottery: The lottery will include 16 teams, up from 14.

Lottery Ball Distribution: The 16 eligible teams will receive a varying number of lottery balls based on their finish, creating a more flattened odds structure.

• Teams with the fourth through tenth worst records will receive three balls (8.1% chance at the No. 1 pick)
• The three teams with the worst records ("draft-relegated") will receive two balls (5.4% chance). These teams cannot fall below the 12th pick.
• The No. 9 and No. 10 seeds in each conference's Play-In tournament will receive two balls
• The losers of the No. 7 vs. No. 8 Play-In games will receive one ball

Drawing: Balls for all 16 teams will be drawn to determine the order of the first 16 picks in the first round.

Future Pick Restrictions: No team can have the first overall pick in two consecutive drafts or a top-five pick in three consecutive drafts, backdated to previous drafts.

Expanded Commissioner Authority: The league gains expanded authority to penalize tanking, including the ability to reduce lottery odds, modify draft positions, and impose fines of up to $10 million.

Sunset Provision: The new system will expire after the 2029 draft and requires a future vote to continue.

2026 NBA Draft Lottery Results

The 2026 NBA Draft Lottery was held on Sunday, May 10, in Chicago. The lottery determined the selection order for the June draft.

Top 14 Lottery Picks

Top 5 Selections

1. Washington Wizards: AJ Dybantsa, forward, BYU
2. Utah Jazz: Darryn Peterson, guard, Kansas
3. Memphis Grizzlies: Cameron Boozer, forward, Duke
4. Chicago Bulls: Caleb Wilson, forward, North Carolina
5. LA Clippers: Keaton Wagler, guard, Illinois