Swag refers to valuable goods, often obtained illegally. Just because your friend has a bag of swag does not make him a pirate (although the patch and wooden leg might say otherwise).

Generally meaning “loot, booty, or plunder,” swag is the stuff in the bags of exited party-goers and plunderers alike. It can also be a bundle carried by a swagman, an Australian migrant worker or drifter. From the Old Norse (re: Viking) sveggja, meaning “to swing or sway,” the verb swag can mean “to sway unsteadily or stagger.” Your bag of swag may swag from its own weight, and you too may swag just trying to carry it.

Definitions of swag

n goods or money obtained illegally

booty, dirty money, loot, pillage, plunder, prize
Type of:
stolen property
property that has been stolen

n valuable goods

Type of:
something of value

n a bundle containing the personal belongings of a swagman

Type of:
bundle, sheaf
a package of several things tied together for carrying or storing

v droop, sink, or settle from or as if from pressure or loss of tautness

droop, flag, sag
slouch, slump
assume a drooping posture or carriage
hang loosely, like an empty bag
Type of:
drop, drop down, sink
fall or descend to a lower place or level

v walk as if unable to control one's movements

careen, keel, lurch, reel, stagger
Type of:
use one's feet to advance; advance by steps

v sway heavily or unsteadily

Type of:
rock, shake, sway
move back and forth or sideways