I suppose not. In the film, though, Watto seems to just be struggling to get by, and his mild antagonism is understandable -- to me -- given the context. He's a little greedy and cynical in his own way, but his intransigent avarice is almost charming: like the Del Boy of Star Wars. And his last-minute resistance to Qui-Gon winning the bet, threatening to renege, is a measure of his desperation, such that when we see him give in because Qui-Gon threatens to turn that planet's endemic crime lords on him, some sympathy is extracted for his character, I think. Later, in AOTC, we understand the basic decency of Watto in a deeper way, since that film's lone scene with him in it portrays him as a sad, lonely, somewhat addled character who was broken by Qui-Gon's bet; and his reasonable treatment of Anakin and Shmi -- again, given the context of the planet -- is played off as ironic counterpoint against the Jedi's anemic moral injunctions and apparent apathy to Anakin's predicament. The screenplay to TPM also had Watto telling Anakin to come back and see his mother one day: the very thing the Jedi expressly forbade him to ever do. Granted, you do need to see AOTC to get the full appreciation of the Watto character arc, but that also speaks to another problem that reared its ugly head the moment TPM came out: abject impatience. People bristled against the idea that Episode I was laying a foundation and was merely the first chapter in a larger story, if they even considered it at all. Rather than give any attention to Qui-Gon's opening advice to Obi-Wan to "be mindful of the living Force", they took to whining and slamming Lucas for a childish tone, for a plot that they alleged went nowhere, and for character attributes that they took out of context and falsely equated with cultural stereotypes, without looking at the bigger picture, or waiting to see it emerge, as they engaged in racist conflagrations of their own. It might be beyond the scope of this thread, but I'll add that the Jar Jar hate would also seem to be based on latent homophobia and profound societal discomfort with people who cross gender lines (even Hayden Christensen would be slammed for being too pretty or whatever, earning the appellation "Gayden Christensen" in some quarters -- based on his physical appearance and even some of his reputed traits that are apparently synonymous with one's sexual orientation ... *snort*). Really, Star Wars just seems to be held to a slightly different standard to normal, in a manner that scales with its immense popularity. In a fantastic universe as rich and colourful as the SW universe, this is probably the burden of popularity. And as I said before, if you want to sound like you have some objective measure of a film's failure to impress you, why not bandy the racist accusation around? In other words, people are stupid. And Star Wars is functioning beyond the base prejudices of the day. It's a commentary about our present-day, but in order to really appreciate that, you need to step outside of the "present day", in order to see just how decadent you and the present day really are. This is part of the reason why a lot of art that's later accepted as "great" is maligned to begin with: a fear of newness/difference and a total mis-comprehension, or lack of willingness to accept or understand, beyond one's simple frame and the ingrained concerns of the present moment. Good point. It's not a "hook" nose. And by pointing this out, you exemplify my earlier substituting of the Emperor for Watto. The Emperor, in contrast to Watto, really DOES have a crooked nose, and has some ugly traits that fit the fact that he is Darth Vader's boss and the villainous mastermind of the main Anakin Skywalker storyline. Yet has HE been called racist? Has HE been seen as an attack on one culture or ethnicity or another? People are always guilty of heavy detail-suppression when they isolate these traits in the first place. I mean, creature-design-wise, Watto is a bit like an elephant, a bit like a walrus, a bit like a hummingbird, and a bit like a duck. He's also like none of these animals. In-universe, he might be genetically linked to the likes of Max Rebo (an Ortolan). Although, it must be added, Max Rebo seems to be based more on an anteater. They're both blue, however, and Qui-Gon casually (but significantly) refers to Watto at one point, at the moment he chooses to patronize him, as his "blue friend". Is THAT bit of in-universe racism ever picked up on? No. Again, detail-suppression and/or willful blindness. (I'm guilty of some there: Watto is a magnificent blend of blue and yellow with a variety of subtler shades that form part of his extremities or his mottled pigment: greens, browns, purples, etc.; only Max Rebo is completely blue-skinned -- and even he isn't entirely monochrome). All too often, people only seem to see what they want to see.