Japan as of 2022, has three drafts: The new-player draft and the developmental draft, which take place on the same day with one following the other, and starting from December 2022, an active player draft.
The new-player draft
The “new-player draft” and developmental draft are for players who have never signed with NPB teams, and who are Japanese citizens or amateur players and Japan residents.
Japanese citizens–regardless of previous professional experience in Japan or abroad–are required to enter the draft before signing their first NPB contracts.
The signing rights for up to 140 players total can be assigned between the two drafts, currently held two days before the start of the Japan Series. Players whose rights are selected in the new-player draft must be added to teams’ 70-man rosters for their tenure of indentured servitude with NPB teams.
The first round of the draft is unique in that each team pre-selects one player in secret. The negotiating rights to players chosen by more than one team are assigned by lottery – when those pulling the winning lot are often asked about what lucky clothing they wore.
Teams which come up empty pick again in secret, and more lotteries ensue, until every team has the right to sign one new player.
From the second round on, the draft is conducted in waiver order until 120 players are selected or every team opts out.
The developmental draft
If 120 players have not been selected by then, the 12 teams start over with the developmental draft, where players selected can only be signed to three-year non-roster developmental contracts. That goes again until no teams want any more players or until the 120-player limit is reached.