This chapter examines the paradox and looks at the significance of gay sports events, in particular the Gay Games. It is about the meaning of sexuality and sexual politics in late capitalism. The chapter also considers the exaggerated difficulties for lesbian women in sport in developing countries. Heterosexism is an oppressive system of dominance based on the pivotal idea that heterosexuality is the only natural and valid sexual orientation and that homosexuality, in contrast, is abnormal, unnatural, deviant and sinful. Heterosexism is entrenched in all social institutions: in the family, the school, legal apparatuses, the media and popular culture. It has been endemic in modern sport and since the 1950s there has been persistent intolerance of sexual diversity and insidious discrimination against lesbians. The fighting for lesbian space in sport has resulted in the establishment and growth of all-lesbian/gay sport. The gay sports phenomenon is a symbol of the growing demand for homosexual cultural activities, the need to experience greater visibility and solidarity, and the quest for an imagined community. In spite of the struggles over values and identities, the Gay Games have become a principal heroic symbol of lesbian and gay celebration, a ritual enactment of group identity. Many lesbian sportswomen, however, still live constantly with the tension created between their gayness and their desire for integration, which could be eased if they were courageous enough to come out in mainstream sport in greater numbers, and if more heterosexual sportswomen were prepared to stand up and speak out against heterosexism and homophobia.