Hi there OP, as saman suggested, Gran Canaria (Maspalomas/Playa des Ingles) is a good place for your kind of hedonistic oriented gay holiday. There are many gay exclusive resorts which are clothing optional and cruisey but the action does need to take place behind closed doors. There is a huge gay beach which is partly nude and a lot of action takes place in the extensive dunes nearby.
The Yumbo Centre in Playa des Ingles - basically a stepped-down layout 1970s shopping plaza - is filled with gay bars with drag acts and dark rooms and leather/kink fetish spots if that scene takes your fancy.
Sitges, a resort on the Costa Brava just South of Barcelona, is very gay oriented with a big party/club scene and gay exclusive accommodations.
Mykonos, a Greek Island in the Aegean Sea is also a popular gay destination, but is very expensive these days and caters to an mainly older gay male clientele. Nude beaches abound on Mykonos.
Berlin also has a huge gay scene, with the leather, S&M aspect pretty big there. Amsterdam is also good with a big gay scene but not quite as “decadent” party-oriented as Berlin.
Further afield, in the USA Key West or Fort Lauderdale in Florida has many clothing optional, cruisey gay male exclusive resorts, as does Palm Springs in California.
Have fun and be safe!