I'd like to ask a provocative question: if this was always the culture at Riot, why are people who joined the company surprised by it? Would it be wrong for people to self-select into a workplace that was tolerant of such jokes, knowing that it would not be totally inclusive?

At some point if you have enough employees leadership needs to grow the hell up - but it doesn't exactly surprise me to learn that game developers use language at work that anyone with gamer friends has certainly heard in private.