Fagioli was given a 12-month ban, of which five months were suspended, and fined 12,500 euros. He will also have to participate in treatment sessions to deal with problem gambling.
He has been placed under investigation by prosecutors in Turin for allegedly betting on illegal websites.
Under FIGC rules, a player found to have bet on football matches could have been banned for at least three years but Fagioli has had more lenient treatment after admitting his offence to the authorities.
As part of his punishment, he will have to speak of his experiences in at least 10 sessions with amateur sporting organisations and with groups helping gambling addicts.
Fagioli has made one appearance for Italy but is not in the squad for the current round of international games.
Sandro Tonali and Nicolo Zaniolo left the national team's headquarters last week after they were also told they were involved in an investigation by prosecutors.