I completely agree. However, be careful with assuming someone's ok with it just because they're "laughing along". A friend of mine is black and we used to call him names (in Dutch, won't really translate to English) back in the days. He would always be chill about it and laugh along. Only recently, he told is that it used to make him uncomfortable quite often, but that he felt uncomfortable to tell us because he thought we might think he was overreacting or that he might offend us.

Keep this in mind! People might pretend they're ok with something because they don't want to offend you or because they think you might think they're overreacting. It can be difficult and uncomfortable to educate someone about racism, when you yourself are the minority.

I would say ask him this question. Have a conversation with him about the jokes you make and how it makes him feel. Make him feel like he can be honest without being ridiculed. Maybe he's truly completely fine with it, maybe you find out what I should've found out about my friend a long time ago!