NBA Expands Draft Lottery to 16 Teams and Adds Tanking Penalties

The NBA's board of governors voted 29-1 on May 28, 2026, to expand the draft lottery from 14 to 16 teams and introduce new rules aimed at reducing tanking, the league announced. The changes take effect with the 2027 NBA draft and include the 8-seed from each conference's playoff picture among the lottery participants.

The new format, called the 3-2-1 lottery, assigns two ping-pong balls each to the three teams with the worst records.

Teams ranked fourth through tenth in reverse order of record receive three balls each. The three worst teams now face a floor of selecting no higher than 12th overall. The 9 and 10 seeds from each conference's play-in tournament receive two lottery balls each.

Losers of the 7-8 play-in games receive one ball each. All 16 teams will participate in the drawing, which sources said is likely to be conducted live next year, either from 1 to 16 or from 16 to 1. Teams will no longer be permitted to win the No.

1 pick in consecutive years. The Washington Wizards, who won the lottery in 2026, cannot receive the top selection in 2027. Teams also cannot hold a top-five pick for three straight years, a restriction that affects only the Utah Jazz in 2027.

The Jazz's pick, already traded to the Memphis Grizzlies, can finish no higher than sixth overall. Teams will be barred from protecting picks in the 12-to-15 range in future trades, though previously agreed protections remain in effect. The format includes a sunset provision that expires after the 2029 season.

The league gained expanded disciplinary authority under the new rules, including the ability to reduce lottery odds, alter draft positions, and impose significant fines for tanking. The Memphis Grizzlies cast the lone dissenting vote. The league office has met with stakeholders since October to discuss competitive incentives and ways to discourage tanking.

Commissioner Adam Silver said in March that addressing tanking was a top priority. "I do think this is a decision that needs to be made at the ownership level," Silver said. "It has business implications, has basketball implications, has integrity implications for the league.

Previously, the league assigned lottery odds only to the four worst teams while ordering the remaining ten by inverse record. The new structure places every non-playoff team into the drawing and flattens odds for the worst records.