Beason and two other GOP legislators had been joking about economic development and the customers of the Greenetrack casino in predominantly black Greene County.
"That's y'all's Indians," one Republican said.
"They're aborigines, but they're not Indians," replied Beason.
Beason's apology was delivered after the Senate Republican Caucus said they'd let Beason stay in his position as chairman of the Senate Rules Committee, the body which decides which bills the Senate will consider.
The feds big bingo bribery scheme in which Beason was testifying faced a major setback when a jury tossed out most of the charges last month. The Justice Department said they planned to bring back the charges that weren't unanimously acquitted, and a trial has been set for next month.