Used in Role Playing Games (RPG) and text messaging when someone says something extreemly funny to you.
Simmilar to ROFLOL. Can be used with this as in ROLFMAO.
Can be used in conjunction with other laughing acronyms such as lol and rofl ie. hahahahlololololroflmao!!!!1 and so on..
Used when the situation is considered funnier than a mere lol.
I've also heard this said aloud in conversation pronounced: La mayo. Also roflmao (pronounced rofl like waffle mayo) and of course lol.
Person 2: LMAO OUCH!
Person 1: Are you ok?
Person 2: Yeah, I laughed so hard I literally LMAO and now my butt bone hurts like hell.
This abbreviation is typically used online, specially during chatrooms or ingame chatting. Its usage has became so usual that even while greeting, someone may respond LMAO.
Player1: Omg, you fucking retarded stop tk.
Player2: LMAO, stfu you cunt.