One On One © 1974 PMC Electronics.
A basketball themed ball & paddle game that featured hoop-like targets for the goal and allowed players to control the ball differently from tennis-style ball & paddle games worked. The paddles also looked like people, albeit in a crude, blocky form.
This might be the first arcade game to use the ball top joysticks, which would become an industry standard over 20 years later.
It might be the first basketball video game, although it is unknown exactly when it reached production; Taito produced their arcade game Basketball in April 1974, but it featured different graphics.