League introduces major reforms to discourage teams from losing on purpose
The NBA has officially approved a new set of rules aimed at reducing “tanking” — the practice of teams deliberately losing games to improve their position in the Draft lottery.
The decision was taken by the Board of Governors, the league’s highest decision-making body, where each of the 30 franchises is represented by one ownership delegate. The proposal reportedly received near-unanimous support and will come into effect from the 2026/27 season.
New “3-2-1” lottery system introduced
The central change is a redesigned Draft lottery system, known as the “3-2-1” format, which significantly alters the odds structure for teams entering the lottery.
The system will expand the lottery pool from 14 to 16 teams and aims to reward competitiveness while punishing poor performance at the bottom of the standings.
Under the new rules:
- The three worst teams in the regular season will enter a so-called “relegation zone”, with reduced chances of securing the No. 1 pick
- Teams outside the playoffs and Play-In but above the bottom three will receive three lottery balls
- Teams in the relegation zone will receive only two balls
- Play-In teams (7th and 8th seeds in each conference that lose their Play-In games) will receive just one ball
According to ESPN reporter Shams Charania, the aim is to increase competitiveness across the league and discourage intentional losing.
Lower odds for worst teams, rewards for competitiveness
The teams in the relegation zone will see their probability of landing the No. 1 pick drop to around 5.4%, while the next tier will have approximately 8.1%.
However, to soften the impact of the penalty system, the NBA introduced a safeguard: teams placed in the “relegation zone” cannot fall below the 12th pick in the Draft order.
Meanwhile, all other lottery-eligible teams may drop as far as 16th position.
Strict limits on Draft success and strategy
The reforms also introduce additional restrictions designed to prevent long-term exploitation of the Draft system:
- No team can receive the No. 1 pick in consecutive Drafts
- No franchise can pick inside the top five in three consecutive years
- Teams will no longer be able to protect Draft picks in the 12–15 range
These measures are designed to reduce sustained rebuilding strategies based on repeated high Draft selections.
Impact examples and long-term effect
The NBA highlighted historical examples to illustrate how the new system would have changed recent Draft outcomes. Under the new rules, teams such as the San Antonio Spurs would not have been able to secure multiple top prospects in consecutive years.
Similarly, the Cleveland Cavaliers’ early-2010s Draft strategy would have been heavily restricted.
Rules in place until at least 2029
The new anti-tanking regulations will be implemented starting in the 2026/27 season and are expected to remain in place through at least the 2029 Draft cycle.
After that period, a sunset clause will require the Board of Governors to reassess the system and decide whether to extend, adjust or replace it.
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