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While playing online video games players like to kill one another.
When you kill some one repeatedly you "own" them.
"P0wned" became a net term for this,
and is an abbreviation of "P0wned" is "pwn".

Pwn is an insulting way of saying you own someone.

Pwny club (Pony Club) reads like it sounds and is used to be futher insulting.
*Chard Kills Gunslinger*
CharD: I owned you.
Gunslinger: You're gunna get P0wned.

*CharD Kills Gunslinger again*
CharD: Hah, P0wned you.
Gunslinger: Nah, you wait, I'll Pwn you.

*CharD again kills Gunslinger*
CharD: Lol, Welcome to the Pwny Club.

*after killing some one repeatedly in an online game*
Endless_Slaughter: Welcome to the Pwny Club
Pantz: Fuck you!
by }-SpiRit-{-GONE November 24, 2008
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