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Tonali, 23, will return to play at the end of August if he does not commit any further gambling offenses before the end of next season.
The Italian midfielder has already been suspended for 10 months, which will end in August, for offenses committed while in Italy.
“I think the decision taken by the FA was the right one, that the suspension would not be extended,” Howe said.
Tonali took a voluntary pay cut after receiving his first suspension.
“That's what he wanted to do and what he felt guilty about…to show the club in good faith that he was sorry,” Howe added.
“He was determined to forget about it and learn from it.”
Tonali was charged by the FA in March and admitted making between 40 and 50 football bets after joining Newcastle from AC Milan in July last year, including four bets on the Magpies' performance. It was.
Mr Howe said Mr Tonali was to be commended for admitting that he “had a problem and needed help”.
“I've seen small parts of his life on the training field. He's a good professional and has practiced very well,” Howe added.
“I think he's had some difficult times, but he's been positive.”
After playing in the Champions League this season, they failed to qualify for Europe's elite club competition for the 2025-25 season.
Howe said Tonali would have been a “big player” for the Magpies had he been available and would have “driven” the team to “an important result”.
“It's a big frustration not to have top quality players available,” he added.
“I know what he can do and that he's going to make a big difference this year, but it wasn't supposed to be that way.”
