The Tottenham Hotspur player was fined 18,000 pounds but three months of his four-month ban were suspended until July 1, 2016, leaving him free to resume playing well in advance of the next campaign.
The suspension was backdated to May 23 when Townsend, who impressed on loan at relegated Premier League side Queens Park Rangers in the second half of last season, pulled out of the England Under-21 squad for the European Championship in Israel.
In a statement on their website, the FA said Townsend was "charged for breaches of FA Rule E8(b) for misconduct in relation to betting, which he admitted and requested a personal hearing".
The rule states that players should not use or give to anyone else for betting purposes any information relating to football which they have learned because of their position within the game and which is not publicly available.
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