In a vacuum, this could be reasonable if debatable considering the whole ambience, references to gambling and such, but knowing what Kotaku usually has to say about this I'm gonna say "Yes it fucking is". Things are not automatically racist for being inspired on something that tangentially was used for racist shit, and this is perfectly visible in Cuphead, which takes pains to avoid all of this.

The most racist thing in Cuphead is a genie with a sarcophagus, and on a scale of one to ten that ranks at about 0.2 or so, because there are no insults slung, it's an imitation of a genuine mistake made in the era and back then it was simply a matter of forgetting Egypt and genies weren't that tight knit.

tldr; I waste my words in telling you this once again but eat shit already.

Ethan Gach is just salty because King Dice fucked his nonexistent wife.