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NASCAR driver Kyle Larson was apparently caught using a racial slur during a livestream of an online car race he was competing in on Sunday night.

Larson drives the #42 car for Chip Ganassi racing in the NASCAR Cup series. (Christian Petersen/Getty Images)

Larson had joined several NASCAR stars and other simulation racers in an unofficial iRacing event organized by Landon Cassill on a virtual version of the historic oval track in Monza, Italy, which hasn’t been used for real racing in decades.

A pop-up on the screen indicated that Larson was the one speaking when someone could be heard saying “you can’t hear me? Hey, n----r.”

NASCAR XFinity Series driver Anthony Alfredo responded, “Kyle, you’re talking to everyone, bud.”

Competitor Aron MacEchern added, “Yep, we heard that.”

It’s not clear to whom Larson was directing the comment.

Larson took part in the eNASCAR iRacing Pro Invitational Series on Bristol Motor Speedway on April. 5. (Chris Graythen/Getty Images))

Larson is the son of a Japanese-American mother, whose parents were held in an internment camp in California during World War II. The Chip Ganassi Racing driver is a graduate of NASCAR’s Drive for Diversity program, which aims to support the careers of up and coming minority and female drivers, and in 2016 became the first person of Japanese descent to win a NASCAR Cup race.

Chip Ganassi Racing said Monday morning that it was suspending Larson until further notice.

"We are extremely disappointed by what Kyle said last night during an iRacing Event. The words he chose to use are offensive and unacceptable. As of this moment we are suspending Kyle without pay while we work through this situation with all appropriate parties."

After saying earlier in the day that it was investigating Larson's comments, NASCAR followed Chip Ganassi Racing's decision in announcing it was suspending Larson from the series indefinitely.

“NASCAR has made diversity and inclusion a priority and will not tolerate the type of language used by Kyle Larson during Sunday’s iRacing event,” NASCAR said in a press release “Our Member Conduct Guidelines are clear in this regard, and we will enforce these guidelines to maintain an inclusive environment for our entire industry and fan base."

Larson's sponsors Credit One and McDonald’s have not yet commented on the incident.

Following the suspension announcements, Larson tweeted a video apologizing for the slur.

"Hey, I just wanna say I'm sorry. Last night I made a mistake and said the word that never, ever should be said, and there's no excuse for that. I wasn't raised that way, you know, it's just an awful thing to say," Larson said.

"I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African American community. You know, I understand the damage is probably unrepairable and I own up to that."

iRacing also suspended Larson from its racing platform, citing its policies on offensive behavior and language.

Larson was seventh in the NASCAR Cup standings before the season was suspended due to the coronavirus pandemic, and is among many drivers who have been taking part in various events being organized on the iRacing simulation racing platform, including the official eNASCAR iRacing Pro Invitational Series.

During the April 5 Invitational Series race on Bristol Motor Speedway, NASCAR Cup driver Bubba Wallace “rage quit” after several accidents, saying on the live chat “that’s why I don’t take this s--t seriously,” and was later dropped by sponsor Blue-Emu.

The Associated Press contributed to this report