Fresh from two sold-out appearances at the Air Canada centre, comic Russell Peters works the stage at a free outdoor concert last night at Dundas Square. (Dave Thomas, Sun Media)

TORONTO - Toronto is the most multicultural city in the world and we love a good racial joke.

More than 15,000 people -- of every race, colour and creed -- packed Yonge-Dundas Square last night for the inaugural Just for Laughs Toronto Festival to hear Brampton comedian Russell Peters' off-colour jokes, as well as the musings of other comedians.

Peters told the diverse crowd that they are an example of how immigration isn't working.

"This is the first time Yonge St. has been blocked off without a shooting for a long time," he said.

He also rhymed off a number of nationalities and asked the crowd to cheer when their own was mentioned.

When the Paskistani people cheered, he quipped how all the dollar stores must be closed. When he spoke about the Guyanese community and they cheered, he said he was surprised they understood what he was talking about.

Diana Abas came out specifically to hear Peters.

"I like the ethnic jokes. They appeal to everyone and since he doesn't just focus on one group, you can't get upset about it," Abas said.

"I like the way he does characters of different ethnic groups. He even does his own ethnic group so it's all acceptable."

Joking about sensitive issues is just funny, said Jamal Anderson, who brought his own lawn chair and was smoking a shisha, a tall pipe with a hose to draw on.

"I'm just upset I couldn't get closer so he could see me and make fun of me and my background," Anderson said.

Michelle Tajudeen is a fan of Peters' TV appearances and said she couldn't miss a chance to see him in person.

"It's just funny how he speaks about the issues and he does good impressions. I also like how he can make things up as he goes along," Tajudeen said.

The three-day Just for Laughs Toronto Festival -- which wraps up today -- has performances by some of the biggest comedians in North America.

This year's lineup of hosts includes Toronto's own Howie Mandel, The Late Late Show's Craig Ferguson and sitcom star George Lopez.

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