Yes, lossy is in the scrabble dictionary

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Lossy Definition

adjective

(Of a data compression algorithm) reducing the amount of information in the data.
from the English-language Wiktionary
Causing attenuation or dissipation of electrical energy.
from Free Scrabble Dictionary

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Top Words by points

Points

lossy

8

2 letter words with LOSSY

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lo

2

os

2

oy

5

so

2

yo

5

3 letter words with LOSSY

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sly

6

sol

3

sos

3

soy

6

4 letter words with LOSSY

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loss

4

sols

4

soys

7

5 letter words with LOSSY

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lossy

8

Found 13 words in 0.14236 seconds