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.
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"
A laggot is a person that while playing match-made, online games, specifically lags his or her connection to gain an advantage.
Laggots are generally regarded as players with no skill that must cheat to win. The term originates from play on Halo and through xbox live. Now, however, it is generally and widely used on many media gaming console platforms and computer platforms.
"Laggot" is also general gaming culture slang for a person that has no skill and cheats. Some famous/celebrity, well known laggots existing today are "lx GODS FINESTxl" "Aristotle Aston" and "BigRed iZ Evo."
lxGODS FINESTxl is a laggot that has no skill and mustcheat to win matches.