Yes, gay is a Scrabble word!

Adjective

1. Bright and pleasant; promoting a feeling of cheer

2. Full of or showing high-spirited merriment

3. Given to social pleasures often including dissipation

4. Brightly colored and showy

5. Offering fun and gaiety

6. Homosexual or arousing homosexual desires

Noun

1. Someone who practices homosexuality; having a sexual attraction to persons of the same sex