The NBA's board of governors unanimously voted on Wednesday to explore bids for Las Vegas and Seattle as potential expansion sites. All 30 team owners backed the measure, surpassing the 23 votes needed for approval.
Former NBA Commissioner David Stern had previously shown reluctance to introduce a team in Las Vegas due to concerns over the proximity of legalized sports betting, especially when Nevada was the only state permitting such wagering. However, following the Supreme Court's historic 2018 repeal of PASPA, over three dozen states have embraced sports betting.
This initial vote allows the NBA to commence a formal bidding process for the two franchises. The league announced it has engaged investment bank PJT Partners as a strategic adviser to assess prospective markets, ownership groups, arena infrastructure, and the economic impacts of expansion.
NBA Commissioner Adam Silver stated, “Today’s vote reflects our board’s interest in exploring potential expansion to Las Vegas and Seattle – two markets with a long history of support for NBA basketball. We look forward to taking this next step and engaging with interested parties.”
Expectations are high that both expansion teams could sell for between $7 billion and $10 billion, with both markets projected to rank among the top eight in terms of revenue generation.
While more approvals will be necessary to officially expand to 32 teams, Wednesday's decision marks the start of that process. It might still take a few years to finalize any expansion purchases, according to ESPN.
There was some discussion among league officials about whether the additional revenue from the two franchises would justify the expansion. Currently, shared revenue is split among 30 teams, but owners deemed the growth potential of Las Vegas and Seattle sufficient to offset the dilution of income in a 32-team setup. Ideas to relocate underperforming franchises, such as the New Orleans Pelicans or Brooklyn Nets, were also considered.
With the vote completed, interest in the Las Vegas team from potential owners and arena developers is anticipated to be substantial.
Nevada Governor Joe Lombardo has been in discussions with Silver regarding the expansion and has reportedly spoken to NBA Hall of Famer Magic Johnson about ownership possibilities. Johnson, who won five NBA championships with the Los Angeles Lakers, is currently involved with several sports franchises, including the Los Angeles Dodgers and Sparks. “I’m very excited to see the NBA advance this process toward a Las Vegas expansion team,” Lombardo said. “Today’s vote by the NBA Board of Governors is a testament to the incredible growth we’re seeing in Southern Nevada and our state’s business-friendly environment.”
Johnson's MAGI Group and Bill Foley, owner of the NHL’s Las Vegas Golden Knights, have both expressed interest in ownership. Other major sports ownership firms, such as Fenway Sports Group and Kroenke Sports & Entertainment, are also expected to show interest.
NBA franchises have become increasingly valuable, with records being set in recent transactions. In 2022, the Phoenix Suns sold for a record $4 billion, while the Portland Trail Blazers ($4.25 billion), Boston Celtics ($6.1 billion), and Los Angeles Lakers ($10 billion) all set new records last year. A Las Vegas franchise could immediately reach top valuations as well.
Finding a suitable arena poses another challenge. T-Mobile Arena on the Strip, currently hosting the Golden Knights and Aces, is a potential venue but does not meet NBA requirements. Foley, who owns a stake in the arena, has previously indicated willingness to finance renovations if he becomes a team owner, although this might be complicated by competing interests.
MGM Resorts, part-owner of T-Mobile Arena, also plays a role in this context, as the arena is located between two of its properties. Whether prospective team owners would prefer to build a new venue remains to be seen. “T-Mobile Arena was built for basketball and hockey,” said MGM CEO Bill Hornbuckle. “Our long-standing relationship with the League is a positive one that stretches back many years, and we would welcome the opportunity to work with the NBA on creating an unforgettable fan experience.”
Other projects for NBA-ready arenas in Las Vegas have emerged in recent years, but none have moved forward decisively. The All Net Arena project, located at the site of the former Wet n' Wild waterpark, was abandoned in 2023 after facing years of delays. Additional efforts from Oak View Group and LVXP have similarly stalled.
The financial implications of a new arena remain significant. The Las Vegas Athletics (A's) began construction on their MLB stadium last June, with costs soaring from $1.5 billion to over $2 billion. Both the A's and the Raiders secured public funding for their venues, but Lombardo has not made any commitments regarding financing for an NBA arena.
In the last ten years, Las Vegas has transformed into a sports hub. Although historically, major professional leagues hesitated to enter the market due to its gambling ties, the landscape has changed dramatically since the repeal of PASPA.
Three professional teams – the Raiders, Golden Knights, and Aces – have launched in the past decade, with the A's slated to move to Las Vegas in 2028. The city also hosts a Formula One Grand Prix race and is home to significant events like the Super Bowl and March Madness. The NBA reportedly aims to start expansion play in 2028, which would mean all four major sports leagues would be operational in Las Vegas by that point.
This development comes at a time when local stakeholders face declines in tourism and air traffic over the past 18 months. Visitor numbers dropped 7.5% year-over-year in 2025, and Harry Reid International Airport saw a 6% decrease in traffic. These trends persisted into 2026, with January alone witnessing a 2% drop in visitation and an 8% decline in air traffic.
NBA teams typically host 41 home games per season, excluding playoffs, significantly enriching the calendar of events in the city. The relationship between Las Vegas and the NBA has strengthened, with the city hosting the NBA Summer League since 2004 and the NBA Cup in-season tournament finals since 2023. Additionally, the U.S. men’s national basketball team has conducted training camps in Las Vegas since 2006.
Josh Swissman, managing director of GMA Consulting based in Las Vegas, shared his thoughts on the situation: “My honest reaction is, finally. It’s been rumored for so long, so it’s nice to see that momentum build over the last few weeks and become official today.” He emphasized that Las Vegas is “incredibly well-positioned” in terms of facilities and hospitality to accommodate further sports expansion, noting that the market can support higher ticket prices than smaller regional settings. However, he cautioned that the NBA might be somewhat late to the market considering the recent downturn in both tourism and gaming revenue. He remains optimistic, suggesting the cyclical nature of Las Vegas will eventually rebound. “There are headlines from the 1950s wondering if Vegas was overbuilt and past its time,” he stated, asserting that short-term fluctuations are likely to stabilize and restore consumer confidence.
