Yes, gay is a Scrabble word!
...and is worth 7 points in Scrabble, and 7 points in Words with Friends
gay
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
What Scrabble words can I make with the letters in gay?
3 Letter Words
2 Letter Words