Lives represent the amount of classic games you'll be able to play. A life will be taken from your account every time you start a game.
If you lose the game, you'll lose that life and you'll have to use another one to start a new classic game.
It's important to know that you'll only be able to use one life per game. This means that, if you lose, you won't be able to use another life and you'll have to start a new game.
We suggest you visit the: Classic Game article, so that you can learn more or answer any questions regarding this type of game.