The penalty comes after Beitar fans directed racist epithets toward Hapoel Tel Aviv striker Toto Tamuz during a game. Tamuz, who was raised in Israel, is of Nigerian descent and spent several seasons playing for Beitar.
Beitar has been one of Israel's most popular and most successful teams, and has won the domestic championship title six times. But in recent years it has fallen on hard times and is currently in danger of relegation from the top division.
It has also got into trouble for its rabid fan base, which is notorious for its racist and anti-Arab chants.
The team will be playing its next home game before an empty stadium as punishment for a previous incident in which their fans stormed the field.