Is “Lossy” a Scrabble word?

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Yes
LOSSY
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Unavailable

Meaning of Lossy

/ˈlɒsi/

adjective
  1. 1.Of a communication channel, subject to loss of signal strength.

  2. 2.(power systems) Of an electricity transmission line, subject to various forms of power loss.

  3. 3.(of an algorithm for converting or compressing data) Reducing the amount of information in data.

    JPEG is a lossy image compression format.