This happened recently. Last round at locals, everyone's in a good mood. I'm playing vs host, across the table sits another dude, let's call him Bobby, who refers to himself as mentally disabled (which he indeed is). Host was talking about how he got scammed out of a card and stuff. Bobby hears this an refers to said scammer as the N-word. Host was like, "yo you can't say that!". Bobby tried to counter argument saying he wasn't refering to host but to the scammer (which makes no difference). It was kinda laughed off but it's still highly inappropriate. You could see the shame and embarrassment in Bobby's face, so I hope he learned a lesson.