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Gay pokemon are a stupid idea, but just for the sake of discussion, here's how I think it could work:
"Gay" should be an ability the males of certain species can have. Mr. Mime, Gardevoir, and Gothitelle are obvious examples.
Gay pokemon are immune to love-based moves from females, but are affected by love-based moves from other males. However, Gay pokemon can successfully use love moves on females or other Gays. Unless the opponent has Mold Breaker, of course.
Female pokemon can't be born with Gay because gay females don't actually exist. But a female with Synchronize will become a lesbian if it copies the ability.
Gay pokemon would still be able to breed. I mean, lots of gay guys who are still in the closet get married and have children, right?