My 7yr old just called a little boy in Ikea play area a fag. I immediately made him apologize and…

My 7yr old just called a little boy in Ikea play area a fag. I immediately made him apologize and took him in the bathroom yelled at him. I'm taking about the iPad and any means of entertainment for i don't know how long. What do you think is going on with him? His behavior is spiraling out of control what can I do?