Paul Gascoigne has learnt his punishment for pleading guilty to a racially aggravated offence which was reported last November.
The former England midfielder admitted using "threatening or abusive words or behaviour" during 'An Evening with Gazza' event in Wolverhampton.
It is believed the offence was committed when Gascoigne made a 'joke' referring to a security guard at the show.
The 49-year-old changed his plea to guilty prior to the first witness being called at Dudley Magistrates' Court, despite previously denying he had made a racist remark.
As a result, the ex-midfielder has been fined £1,000 and ordered to pay a further £1,000 in compensation.
The district judge, Graham Wilkinson, had earlier said the victim was “clearly humiliated” and it was “the sort of insidious racism that needs to be challenged”.
It represents the latest blow for the former Newcastle and Tottenham star who has battled alcoholism ever since he hung up his boots in 2004.
He has suffered various relapses during the last ten years, even prompting his agent Terry Baker to cast doubt on how much longer 'Gazza' would live for in 2013.
"His life is always in danger because he is an alcoholic. Maybe no one can save him - I don't know. I really don't know," Baker said.
But he looked as healthy as ever as he posed for photographs and was happy to provide signatures for fans who had seen him before the trial on Monday morning.
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