NBA approves 3-2-1 lottery reform plan to combat tanking in 2026

The NBA will introduce a flat-odds draft lottery system in 2026 to reduce incentive for losing on purpose.

New lottery structure revealed NBA commissioner Adam Silver announced on Stephen A. Smith's radio program that the league has finalized a draft lottery reform plan to submit to team owners later in May. The proposal aims to remove incentives for teams to deliberately underperform by introducing a system of uniform odds. Silver emphasized the goal is to eliminate any advantage from being bad, describing a concept called draft relegation where the three worst teams face steeper odds than those picking from fourth through tenth. He noted adjustments are still being fine-tuned before the presentation. ## Details of the 3-2-1 system The league's 3-2-1 lottery system, first reported weeks prior, would reduce the winning percentages for the three lowest-ranked teams compared to teams picking between fourth and tenth. This change seeks to discourage teams from intentionally losing games to improve draft positioning. The adjustment targets the issue of tanking, where teams aim for poor records to secure higher draft picks. All four teams that gained lottery ground this year—the Washington Wizards, Utah Jazz, Memphis Grizzlies, and Chicago Bulls—attempted to manipulate their draft fate in final regular-season weeks. ## Stricter penalties for tanking proposed Silver confirmed the NBA will implement stronger disciplinary measures for teams that engage in overt tanking beyond previous enforcement levels. Earlier this season, the league fined the Jazz $500,000 for actions deemed detrimental to the league. He stressed that future punishments could extend to removing draft lottery balls or altering draft order. Silver warned teams that financial penalties may no longer be a sufficient deterrent, as losing may now directly jeopardize their ability to secure top draft positions. ## Proposal expected to pass this month League officials indicated this draft lottery reform is likely to be approved by team owners during their meeting later this month. While some question whether changes are necessary, there is widespread agreement something must change following recent draft outcomes. The proposal is designed to address concerns over how teams approach competition late in the season. ## Temporary measure tied to CBA timeline The NBA confirmed the new lottery system will remain in effect only until the 2029 season, aligning with the expiration of the current collective bargaining agreement. Addressing tanking may become part of future CBA negotiations as a result. Silver described the system as a temporary flat-odds model that will 'sunset' after three years, allowing time to evaluate its effectiveness and explore alternative distribution methods. He acknowledged teams often find creative ways to exploit new systems, highlighting the need for careful review.