Source : Webster's Revised Unabridged Dictionary (1913)

Penalize \Pe"nal*ize\, v. t.
   1. To make penal.

   2. (Sport.) To put a penalty on. See {Penalty}, 3. [Eng.]

Source : WordNet®

penalize
     v : impose a penalty on; inflict punishment on; "The students
         were penalized for showing up late for class"; "we had to
         punish the dog for soiling the floor again" [syn: {punish},
          {penalise}]