No, it doesn't mean prostitute.
"Paul coined 179 terms in the New Testament. The terms do not, because they are original, significantly change the context of the verses they appear in.
Nor is it remarkable he would have coined this one, considering he derived it directly from the Greek translation of the Old Testament (the Septuagint):
meta arsenos ou koimethese koiten gyniakos (Lev 18:22)
hos an koimethe meta arsenos koiten gynaikos (Lev 20:13)
In other words, when Paul adopted the term arsenokoite, he took it directly from the Levitical passages-in the Greek translation - forbidding homosexual behavior. The meaning, then, could not be clearer: Though the term is unique to Paul, it refers specifically to homosexual behavior.
As for the inference that it applies to male prostitution, a breakdown of the word shows it implies nothing of the sort. 'Arsene,' as mentioned earlier, appears few times in the New Testament, always referring to "male." 'Koite' appears only twice in the New Testament, and means "bed," used in a sexual connotation:
Let us behave decently, as in the daytime, not in orgies and drunkenness, not in sexual immorality [koite] and debauchery... (Rom 13:13)
Marriage should be honored by all, and the marriage bed [koite] kept pure, for God will judge the adulterer and all the sexually immoral. (Heb 13:4)
The two words combined, as Paul used them, put "male" and "bed" together in a sexual sense. There is no hint of prostitution in the meaning of either of the words combined to make arsenokoite."
Responding to Pro-Gay Theology, Part III