The 41-year-old Englishman was found guilty of breaking rules on betting on matches involving himself and other players following an investigation by the WPBSA.
The ruling body said he bet in his own name, used proxy accounts and an account under his manager's name, wagering 35,771 pounds ($47,000) between 2003-15.
Bingham's ban is immediate with three months suspended for a year. The world number 10, who must also pay 20,000 pounds in costs, is free to compete again on Jan. 26.
Under the rules, players are barred from betting on any aspect of sanctioned tournaments. The WPBSA said there was no suggestion Bingham was involved "in any corrupt activity" or failed to perform to the best of his ability in matches.
"It is very disappointing to see such a high profile player fall foul of the WPBSA Betting Rules. Stuart is a great competitor and I have no doubt he has always played to the best of his ability," WPBSA Chairman Jason Ferguson said.
Bingham, world champion in 2015, was not immediately available for comment.
(Reporting by Neil Robinson, editing by Ed Osmond)
