This statement is often used in place of "touché". However, "well played" shows more class. The proper use is when one has been defeated or has lost in a battle of words.

To get killed by a player camping or spamming. To the point it bothers you.

To have done something well. Often said while pretending to hold a monocle to the eye by making a circle with your fingers, or shaking the other persons hand. Usually said after being proved wrong. Originated in Pine Bush High School.

Could be used in reply when somebody says something sexy or if you approve of something

Well played is usually used in the occasion when someone either does something or completes a task correctly and or does the opposite and fails miserably.

The baseball equivalent of touche.

Originating from the popular MLB commercial on Youtube where Joe Mauer gives proof of his bikini-clad trip to Cabo with the host, with a photo in a frame, after the host denies ever going.

A fancier alternative to 'owned' or 'pwned'.

Can also be used as a compliment for a particularly good comment or as an admit to defeat after being owned.