Games CAN be laggy if you're connected to a crappy host but they're not bad at all if you've got a good host.
NEVER NEVER NEVER choose "Quick Match". That will almost always guarantee you a crappy host.
Basically choose "Custom Match" and it will display a list of possible hosts. Look for a little dot near the host's name. GREEN means they have a good connection speed YELLOW means it's OK but only for smaller games. ORANGE and RED mean it's crappy and unplayable respectively.
If you can't find any green dot hosts or if you're still having problems simply host the game yourself ("Create Match") As the host everyone will connect to you, so YOU are guaranteed not to have laggy play, if you're connection is crap then everyone else will be laggy but hey that's their own fault for connecting to a Red dot.
Also general tips, just make sure the other things on your network connection aren't sucking up bandwidth, Downloads, Uploads (Torrents, FTP Servers, IRC transfers, etc. etc. etc.) Also other stuff like Voice Over IP or Skype can trash your connection speed and make it laggy for you, or for other players if you're hosting.
I was playing a game of Prey once and got a call on my VOIP phone... the game went uber-laggy for the 2 minutes I was on the phone, as soon as I ended the call it went back to normal.