This sexual world included homosexuals too, and gay as an adjective meaning 'homosexual'' goes back at least to the early 1900s. A gay woman was a prostitute, a gay man a womanizer, a gay house a brothel. In addition to its original and continuing senses of 'merry, lively'' and 'bright or showy,'' gay has had various senses dealing with sexual conduct since the 17th century. See corresponding entry in Unabridged unhappy, mournful. See corresponding entry in Unabridged brilliant. It suggests, even more than the latter, convivial animated enjoyment. Merry is often interchangeable with gay: a merry disposition a merry party Joyful suggests gladness, happiness, rejoicing: joyful over the good news.
Jolly indicates a good-humored, natural, expansive gaiety of mood or disposition: a jolly crowd at a party. Gay suggests a lightness of heart or liveliness of mood that is openly manifested: when hearts were young and gay.
Gay, jolly, joyful, merry describe a happy or light-hearted mood. See corresponding entry in Unabridged gleeful, jovial, glad, joyous, happy, cheerful, sprightly, blithe, airy, light-hearted vivacious, frolicsome, sportive, hilarious.