The NBA's proposal for a "3-2-1" draft lottery reform, shared with general managers in late April, has shaped trader consensus around a rules change at 67% implied probability. Designed to deter tanking and reward better regular-season records, the plan expands the lottery from 14 to 16 teams, flattens top-pick odds, and applies a relegation penalty that limits the three worst teams to just two balls each while barring back-to-back No. 1 selections. The framework targets the 2027 draft and heads to a Board of Governors vote on May 28. Recent 2026 lottery results, where the worst record still secured strong positioning, have intensified league focus on aligning incentives with competitive play in the standings rather than deliberate losses.