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1.
An idea that makes no sense as kegs would be cooler if left exposed to the wind. By surrounding them with snow, trapped air acts as an insulator thus limit the amount of heat lost from a keg. Whilst there will be some cooling of the liquid (beer) inside, you could have considerably cooler beer by not insulating it with snow.

Then again you cant blame em...rednecks are the sharpest crayons in the box
Q. Why do Eskimos live in snow igloos?..
A. They are called inuit...It traps air acting as a insulator thus keeping them warmer

Kegloo a rednecks brainchild; "Hey ma get on the dang roof top"

by Manuel Noriega June 30, 2006
 
2.
A combination of the two words keg and igloo. It is a snowbank or large pile of snow that is hollowed out inside to fit a keg of beer. Usually used by rednecks from the northern states and often decorated with a spray on mixture of food coloring and water.
If you want the coldest beer on tap you better build a kegloo.
by Tracy Lou March 28, 2005
 
3.
an igloo made of kegs, usually constructed around a new whiny general manager's car at a restaurant with many beers on tap
"Last night we built made a kegloo that blocked the new guy's car... what a tool"
by Rufus Caliente January 01, 2008