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PG Ref is 100% correct on the rule.
Camron posts exactly what I thought about for preventing a player from bringing water onto the court. It is illegal and players should not be doing this.
I would verbally warn first if there isn't a spill. If there is, then I would not hesitate to issue a T. What if no official saw the spill and the game continued with a player or official slipping and falling causing an injury? The coach and player jeopardized the safety of everyone on the court. That is unacceptable behavior.
The only formal warning for a spill comes after a time-out or intermission.
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