Those conditions aren't exactly going to encourage him to suddenly come out to a gay friend right in the middle of a public place. While Joe clearly isn't afraid to associate with an open homosexual, as a college jock he's probably internalised some homophobia and is reluctant to admit to himself that he's gay because he's afraid of being judged the way people judge Travis behind his back. Joe clearly has some internal conflict over his attraction to Travis and still considers himself to be 'straight' bear in mind that just the night before that conversation happens Joe was having sex with a girl (which we know didn't work out because he's not attracted to women, but I'm 99% certain he wants to believe he is), and we know from Dennis' comments that there's a realistic amount of homophobia flying around the campus. Honestly I think it would have been odd if Joe turned around and confronted Travis about his newfound feelings then and there. There are newer versions of this gallery available: Passing Love 2 (Ongoing), added 12:38