Latency in online gaming refers to the delay between a player's action and the corresponding response in the game environment. High latency can result in lag, negatively affecting the gaming experience by causing delays in character movements or actions. This delay can lead to frustration, miscommunication, and a diminished competitive edge, particularly in fast-paced multiplayer games. Players typically seek low-latency connections to ensure smooth and responsive gameplay, which is crucial for maintaining interaction and realism in gaming experiences.