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the act of being racist, casually.
i’m a fan of casual racism. i’m not going to burn a cross in your yard, i’m just going to call you a spear chucker in my head.
the art of being slightly racist in a casual fashion. it’s when one doesn’t really hate people of another color, but finds jokes about them ridiculously funny. the casual racist will often make jokes about his own race in addition to jokes about other races. the casual racist does not hate, he appreciates.
tom: what’s the difference between a black man and a bench?
treyshawn: i don’t know. what?
tom: a bench can support a family of four!
treyshawn: hey, that’s racist!
tom: but you know i love you, man!
treyshawn: yeah, i guess it’s just casual racism.
“casual racism” is when somebody uses racist words or phrases but uses it as a regular world/insult just like any other words or phrases, not directing it as an attack on other races/religion.

the people who use “casual racism” don’t use it as intentional racial term, nor do they often have anything against other races and religions, but they use it as “normal” word or insult.

often people who have rap/hip-hop influences in their life use this, mainly fans of tupac, n.w.a, eazy-e etc…

“casual racism” is often picked up from listening to rap/hip-hop artists who use “n-gg-” and such terms in their songs.
as a “normal” word form –

hey jamal, w-ssup n-gg-?

or

“yo tom, did you hear sam, he just said w-ssup n-gg- to jamal”

“yer leon, i heard, thats just sams casual racism coming out, it’s because he listens to all that west-side rap!”

as an “insult” form –

“yo reggie, you alright n-gg-!”

or

“hi abdul, i heard you stole a cake, thats a bit jewish of you!”