What would you do or say?

A guy I was talking to and I were gaming and one day he and I were joking. Said his teammates were crap cuz they lost lol and I was just talking to him and he was saying shut up jokingly then when he said shut up again he said n***er jokingly. He gets it from a friend of his but it still hurt. He knows I'm mixed with black and that offended what I identify as also. What would you say? I approached him said it hurt me and he asked if I was seriously hurt by him.
What would you do or say?
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