Green’s Dictionary of Slang

arse bandit n.

also arse-bender, ass bandit, anus bandit, bandit
[arse n. (1) + -bandit sfx (2)]

a homosexual male, also attrib.

[US]Ragen & Finston World’s Toughest Prison 789: anus bandit – A convicted sodomist.
[US]B. Rodgers Queens’ Vernacular 155: The sexually dominant prisoner [...] is called anus bandit.
‘Shane Baxter’ Factory Girl n.p.: [She] found their favorite retreat had been invaded by a couple of arse-bandits, a fair haired youth and a middle-aged man.
[UK]A. Bleasdale Who’s Been Sleeping in my Bed 49: The arse bandit woodwork teacher.
[UK]G. Melly Rum, Bum and Concertina (1978) 67: You’re an arse-bandit what acts like ’e was a brown ’atter.
[Ire]J. Morrow Confessions of Proinsias O’Toole 27: Save that guff for the arse-banditti and let’s hear what you’re after.
[US]Maledicta III:2 222: The aggressiveness of the younger ass-bandit who wants to score in sex as a game is, in the older homosexual, taken as evidence he is a dizzy queen.
[UK]J. Sullivan ‘Go West Young Man’ Only Fools and Horses [TV script] He’s definitely a bandit that one. Tonight we dance with our backs to the wall, Rodney!
[UK]Flame : a Life on the Game 58: There were fifteen policemen in the room [...] they called me everything – ‘arse-bender’, ‘queer’, ‘cock-sucker’.
[UK]A. Bleasdale No Surrender 44: Faggots [...] Arse bandits.
[US]S. King It (1987) 34: I ought to make you eat that hat, you fucking ass-bandit!
[Ire]R. Doyle Snapper 70: He’s a Moonie or somethin’, isn’t he? [...] And an arse bandit.
[UK]K. Sampson Outlaws (ms.) 136: This pure fucking bandit comes mincing into the line of fire [...] This lad’s a monster, camp as fuck and right in your face with his Big Hom act.
[SA]A. Lovejoy Acid Alex 122: Nongalosh was the prison word for arse bandit.
[UK](con. 1980s) I. Welsh Skagboys 335: Right, well then, we’ll have you in the kitchen, working with Chef, the Cream-Shirt-lifting arse bandito pouts in petty triumph.
[Aus]J.J. DeCeglie Drawing Dead [ebook] You’re about the biggest asshole I ever met in my life [...] Better than being an ass-bandit though ain’t it.

In derivatives

arse-banditry (n.)

homosexuality; homosexual activities.

[UK]M. Manning Get Your Cock Out 88: It was the early 70’s — glam rock and rampant arsebanditry were fashionable back then.