NBA officials have proposed a new draft lottery format called the “3-2-1 Draft Lottery,” designed to discourage tanking by reducing incentives for teams to lose games on purpose to improve their draft position.

Tanking has been an issue in the NBA for a long time, especially given the way the system currently functions. Teams that lose more and have worse records are rewarded with better lottery odds, creating an incentive to prioritize losing games over winning ones. While tanking is not a constant issue in the league it is commonly associated with teams in rebuilding phases.

A great example of this in NBA history is during the Philadelphia 76ers’ rebuilding period, known as the “Process” era. This franchise spent multiple seasons near the bottom of the standings and used the lottery draft system to help rebuild its roster. This caused the league to explore changes to the system multiple times.

NBA officials plan to implement the 3-2-1 Draft Lottery starting with the 2029 season. This system would adjust lottery odds among teams at the bottom of the standings so that the worst teams no longer automatically receive better odds for the number one overall draft pick.

The structure of the proposed 3-2-1 Draft Lottery, by contrast, would reduce the upside of finishing at the bottom of the standings or with the worst record among teams in the NBA. This proposal, brought by NBA officials, is intended to curb tanking by reducing the rewards for losing games later in the season.

Before being fully implemented during the 2029 season, the proposal needs to be approved by NBA team owners through a review process to become official.

If it is approved and adopted by the NBA, the 3-2-1 Lottery Draft would overhaul the current draft system that has already been changed many times in recent years.