The word itself means a homosexual male, however it has other uses as well. It is very commonly considered a synonym for "stupid", "dumb", or "bad". It's a fun word to use especially since it is so easy to say, although it does however offend some homosexual individuals for some reason. Nowadays, gay isn't typically what you call homosexuals anymore. 99% of people call them either "flamers", "Fags", "homos", or occasionally "fagots". The term "gay" is more used to describe something dumb or stupid in this day and age.
1. Damn, my math class is so gay! I get at least 2 hours of homework a night!
2. (infrequently used): Hey, you know Josh? I just heard he's gay. typically, the sentence wouldn't use the term gay but instead use flamer or fag.
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