Yes, pegs is a Scrabble word!
...and is worth 7 points in Scrabble, and 9 points in Words with Friends
pegs
Verb
1. Succeed in obtaining a position
2. Pierce with a wooden pin or knock or thrust a wooden pin into
3. Fasten or secure with a wooden pin
4. Stabilize (the price of a commodity or an exchange rate) by legislation or market operations
Noun
1. A wooden pin pushed or driven into a surface
2. Small markers inserted into a surface to mark scores or define locations etc.
3. Informal terms for the leg
4. A prosthesis that replaces a missing leg
5. Regulator that can be turned to regulate the pitch of the strings of a stringed instrument
6. A holder attached to the gunwale of a boat that holds the oar in place and acts as a fulcrum for rowing
What Scrabble words can I make with the letters in pegs?
3 Letter Words
2 Letter Words