Isn't it better to make a "remove censorship" option in game like League of Legends has for example, then you can let people choose to have censorship applied to their text or not. Of course censorship would be ON by default.
words that make chatting really hard in terms of "n-word"
Most of the time these words are found split apart in normal civilized sentences.
aside from these theres also a pretty dumb one regarding the n-word being "cotton picker" don't really know what to think of that because if you were to say "Go pick cotton" it's not censored.