People definitely abuse the tags. I see so many people put the Gay tag on games with absolutely zero gay characters because there is (sometimes forced) M/M sex. Like, that's not what gay means. Gay isn't an activity. It's an orientation. Some of those would do fine with an LGBT tag (but not Gay tag), and some really shouldn't have either.
Weirdly, some of these games are extremely popular. Like "Straight!?" being one of the most popular "gay" games. He's not fucking gay; he's bisexual. It absolutely should not have the Gay tag.
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Gay isn't an activity. It's an orientation.
In context, it is a tag. And that can very well mean an activity in the game, that can be called gay, even though the characters might be bisexual.
It is just tags. One has to balance people looking for/avoiding certain content. If you have m-m action in a game, "gay" does the trick. Nuances that one or both of the characters are not oriented exlusively gay, are better explained in the description.
So, yeah, it is not what "gay" means, but it is one of the things the tag "gay" can mean.