DAE have dad's that are slightly bigoted (cracking offensive jokes, etc), but not enough to make you disown them? How do you deal with them?

My dad is one of those people who will say some of the most offensive things I've ever heard, yet he's generally nice to everyone. I always tell him to stop it, but he says it's a free country or that he's only kidding. He's made plenty of jokes about minorities and now that I got kids of my own I'm tired of it. Any advice?