A difficult employee?

i have an issue common to everyone, a difficult employee. This guy i guess is a , i dont know but he acts like a woman and says very vulgar things. we are pretty relaxed at our job so sometime we joke around and whatnot, but i over hear other employee's saying they are going to smack the hell out of him and his response is "go ahead, and while you slap me talk to me like Mr. T" . and one day i was completely fed up with his antics so i acted unprofessionally and said "F*** you" and his response was "I only do white men, you don't fit the criteria" I don't know what his problem is, but sometimes i'll go and get a drink and see that his hand is feeling all up the backside of another female. he gets away with to much, the woman there let him touch their and they just laugh, and he smacks their s and they smile but if i even thought to do that i would get put on the 1st bus to rikers island. i was in the vip room for a function once to set up and he was over there with his legs crossed talking to 3 other females, and has his hand all up the girls just rubbing and smacking and she said nothing. he says things like "damn girl your look awesome today" and he makes a motion like he is kissing her . but sometimes he'll be spotted saying things like "i want a bunch of men to release their semen on my face" or "i would love if 2 men shoved their manhood down my throat". but back to my point how do i deal with him? how does he get away with touching these females and saying the things he does? last but not lease he goes inside of a closet, and comes out with mayo smeared on his face around his lips and on his uniform and says infront of everyone "keep it down in here, i'm trying to make myself happy". this is unacceptable and i cannot take it anymore