Green’s Dictionary of Slang

blue adj.7

[? blue adj.3 or ? the trad. colour of clothing for baby boys]

(US gay) homosexual.

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[US]Gaymart.com Queer Sl. in the Gay 90s 🌐 Blue – Gay, referring mostly to males.

In phrases

blue-arse bandit (n.) [ext. of arse bandit n.]

a homosexual male.

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www.menagerie.co.uk 10 June 🌐 What about Ben, is he going to come back and do a Mynah birds set, and maybe even a blue-arse bandit-flies-undone set as well.