Following his August departure from Cardiff, Simpson, 26, is a free agent.
According to the Football Association (FA), the event happened when Cardiff was in Portugal for their preseason.
In addition to being fined £8,000, Defender Simpson has to participate in “face-to-face education”.
His racial abuse was judged a “aggravated breach” of the governing body’s standards, and he violated FA rule E3 for misconduct.
Cardiff has remained silent.
Before the summer transfer window closed, Simpson’s departure by mutual consent was announced by the team.
Simpson, who was born in Weymouth, progressed through the ranks at Bournemouth and scored just once in 35 professional appearances for the Cherries, including 11 Premier League games, before joining Rangers in 2021.
He made fourteen appearances for the Scottish powerhouses before relocating to Cardiff for an unknown in August 2022
Even though his contract was still valid for another year, he departed Cardiff.
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