How did homosexuals begin to be referred to as "gay"?

Firstly, I think it's pretty clear that gay IS a slang word for homosexuals, whether it's used as a noun or adjective, as that's how people hear it used most often. Words are defined by how they are used, not used by how they are defined after all.

Secondly, I checked my Etymology Dictionary, as well as EtymOnline, and looked up some info on this for you [Bolds/Italics added for emphasis]:

'OED gives 1951 as earliest date for slang meaning "homosexual" (adj.), but this is certainly too late; gey cat "homosexual boy" is attested in N. Erskine's 1933 dictionary of "Underworld & Prison Slang;" the term gey cat (gey is a Scottish variant of gay) was used as far back as 1893 in American English for "young hobo," one who is new on the road and usually in the company of an older tramp, with catamite connotations. But Josiah Flynt ["Tramping With Tramps," 1905] defines gay cat as, "An amateur tramp who works when his begging courage fails him."

'Gey cats also were said to be tramps who offered sexual services to women.

'The "Dictionary of American Slang" reports that gay (adj.) was used by homosexuals, among themselves, in this sense since at least 1920. Rawson ["Wicked Words"] notes a male prostitute using gay in reference to male homosexuals (but also to female prostitutes) in London's notorious Cleveland Street Scandal of 1889.

'Ayto ["20th Century Words"] calls attention to the ambiguous use of the word in the 1868 song "The Gay Young Clerk in the Dry Goods Store," by U.S. female impersonator Will S. Hays, but the word evidently was not popularly felt in this sense until later (cf. the stage comedy "London Assurance" written 1841 and popular through early 20c., with its character Lady Gay Spanker, famously played by Mrs. Nisbett). The word gay in the 1890s had an overall tinge of promiscuity -- a gay house was a brothel. The suggestion of immorality in the word can be traced back to 1630s.

'Gay as a noun meaning "a (usually male) homosexual" is attested from 1971."'

That last bit is the official date that it was recorded, but as mentioned, it was probably used to describe homosexuals way earlier than that.

Hope that was of some help.

I do not know enough about the history of terminology to give you a full answer to this question, and for that I apologise, but: the word 'gay' when used as 'homosexual' could be considered a slang word. Slang is informal vocabulary--in a formal situation, I think the term 'homosexual' would be used. However, because the word 'gay' is being used in less informal ways, in some places it may not be slang. Of course, 'gay' when used as meaning 'stupid' (etc) is a slang word.

As for the actual question, word usage changes often. I don't know the exact point or way it came to be used to mean homosexual, and I don't think many could tell you unless they were well versed in the history of terminology. I'd guess it came to be used in the 1960s or so, because I believe it's been in pop culture from that time period, but again, I'm not entirely sure. 'Queer' has been used for quite a while as a catch-all.

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i honestly don't know...... *scratches head*

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Zero personal effort was put into this answer,but it did help,didn't it?

I've never understood how the word "gay" became the slang term for homosexual...I know quite a few homosexuals and about half of them are so far from "gay" its not even funny....and its really sad that todays "world" doesnt even know the correct definition of the word...the other day someone said "omg you're so gay" and I said "I try to be..every day" totally shut the convesation down.