NASCAR star Kyle Larson used a racial slur on a live stream during a virtual race Sunday

NASCAR star Kyle Larson was suspended indefinitely by the stock car circuit and without pay by Chip Ganassi Racing on Monday for using a racial slur on a live stream during a virtual race.

With all NASCAR events suspended amid the ongoing pandemic, Larson was competing in an iRacing event Sunday night when he appeared to lose communication on his headset with his spotter. During a check of his microphone, he said, 'You can't hear me?' That was followed by the N-word.

'We are extremely disappointed by what Kyle said last night during an iRacing Event. The words that he chose to use are offensive and unacceptable,' read a statement from Chip Ganassi Racing. 'As of this moment we are suspending Kyle without pay while we work through this situation with all appropriate parties.'

Larson has since apologized on social media.

'Last night I made a mistake and said the word that should never ever be said and there's no excuse for that,' he said.

'I wasn't raised that way and it's just an awful thing to say. I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African-American community.'

'I understand the damage is probably unrepairable and I own up to that. I just want to let you all know how sorry I am and I hope everybody is staying safe during these crazy times.'

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The 27-year-old Larson was speaking with other drivers on an open line that was being broadcast on Twitch, which live streams video game competitions among other things. The Twitch display shows viewers which driver is speaking at any given time (center of the screen, above the steering wheel but below the windshield). And although Larson appeared to think he was having communication issues, the audience could hear him clearly and see his name on the screen when he uttered the racial slur

The 27-year-old Larson was speaking with other drivers on an open line that was being broadcast on Twitch, which live streams video game competitions among other things.

'Hey Kyle, you're talking to everyone, bud,' fellow NASCAR driver Anthony Alfredo said.

Another voice could be heard saying 'no way did that just happen,' while others chimed in with 'yikes' and 'oh my gosh.'

'Oh damn,' said another voice. 'He did not just say that.'

The Twitch display shows viewers which driver is speaking at any given time. And although Larson appeared to think he was having communication issues, the audience could hear him clearly and see his name on the screen when he uttered the racial slur.

Larson's slur was heard on IndyCar driver Conor Daly's live stream and subsequently went viral afterwards.

Larson is half Japanese - his grandparents spent time in an interment camp in California - and he climbed from short track racing into NASCAR through its 'Drive for Diversity' program. He is the only driver of Japanese descent to win a major NASCAR race.

Now in his seventh full season in NASCAR, Larson is in the final year of his contract with Chip Ganassi Racing. He was at the top of the list of a crowded free agent field when the circuit was suspended four races into the season as sports stopped during the coronavirus crisis.

NASCAR quickly pivoted to create an iRacing league of virtual racing that has engaged viewers and set records for esports television viewership. One of the draws of the platform is that drivers can link into one another on a live stream, where they banter, argue, make jokes and discuss the racing. Fans can eavesdrop through the gaming app Twitch.

Kyle Larson, driver of the #42 McDonald's Chevrolet, practices for the NASCAR Cup Series Auto Club 400 at Auto Club Speedway on February 28, 2020 in Fontana, California

Larson has six career Cup wins and finished a career-best sixth in the standings last season. He is a married father with two young children.

Among his sponsors at Ganassi are McDonalds and Credit One Bank.

NASCAR fans were quick to poke fun at Larson. One photoshopped his face onto a McDonald's employee, joking that he got the 'Oof of the century award.'

Another joked he was getting into his 'eCoffin,' which is a reference to the iRacing and eRacing circuits that have popped up amid the coronavirus pandemic.

He is considered one of the top sprint car racers in the country and in January finally won the prestigious Chili Bowl after 13 attempts.

One week earlier, Bubba Wallace 'rage quit' an official NASCAR iRacing event televised live nationally and his sponsor fired him immediately.

Wallace had been wrecked, and, fed up, quit the game and admitted it was out of anger on Twitter. Blue-Emu, a topical pain reliever who had sponsored Wallace for the virtual race and has an association with him for real, replied to the tweet firing Wallace.