This would closely fall under player respect/disrespect. As he called you a fag, and you asked him to stop and he continued to. As for the nigger part, yeah in reference and perspective you can tell he was saying it to you. But technically he did not say "you fucking nigger" or "you're a fucking nigger". Technically not directed per se.

No other previous bans, 42+ hours logged in wcs, I say warn and educate the player with player respect and chill out with racist words.

My vote is warn.