The attitude towards gays and lesbians has shifted dramatically in the last twenty years.  Seemingly an ongoing battle between the socialist Sandinistas and more conservative social Christians, official policy has bounced from total legality to total repression multiple times, landing fortunately on the side of total legality.  Managua, the capital, has held a gay pride parade every June since 1991.  Still, with 85% of the population devoutly Roman Catholic, the underlying truth is that ignorance may be what maintains bliss.  There are two main gay venues in Managua - Tabu and Bar Q.  Wildly popular for their impressive DJs and entertainment systems, it’s impossible to give an address because their are no street names in Managua.  You’ll have to ask around.  Another pit-stop might include Mi Terra in Granada, where expat gays tend to congregate.  While not totally out and open, the scene - once you find it - is still pretty happening.