It refers to someone exploiting prejudice against another race for political or some other advantage.
The use of the southern strategy by Republican political candidates is said by some to be a version of playing the race card, such as when former Senator Jesse Helms, during his 1990 North Carolina Senate campaign, ran an ad showing a black man taking a white man's job, intended as a criticism of the idea of racial quotas. The ad was interpreted by many people as trying to play to racist fears among white voters.
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