Combination of faggot and lagger.
1. Someone who lags so hardcore on an online game that they are difficult to kill.
2. Someone who lags efficiently and of their own choosing, to avoid being killed.
HISTORY
To my knowledge, this term originated in the online game Subspace. Its usage has probably spread to many other games.
l33tz0rz> Omfg, he's bouncing likea bunny in the mating season.
Jiggawha> Yeah, that guy is such a laggot.
n. insult or title of a person on a online game such as Call of Duty Modern Warfare 2 or Halo 3 who creates much lag, purposely or unintentionally, ruining the game expeirience for other players. They are often referred to as "that fag on our team who is lagging"
Dude, somebody tell that laggot to leave the game, he's making my children cry!
noun: 1. a term used to describe an instance of extreme internet lag, often resulting in an undesirable effect or outcome in a video game or other media source
2. when your internet connection or media signal is being gay
3. negative consequences of unstable connections, overworked servers, or weak signal broadcast/reception
"It seems like every time i try to watch this show, Comcast starts up with the laggotry."
"I totally lost that last game to some straight-up laggotry."