He praised the Crown Prosecution Service for taking the case to court, saying Gascoigne's comment at Wolverhampton Civic Hall on 30 November was an example of "insidious" racism which needed to be challenged.
The judge told Gascoigne: "Mr Rowe was clearly humiliated on stage, as part of an act.
"As a society it is important that we challenge racially-aggravated behaviour in all its forms.
"It is the creeping 'low-level' racism that society still needs to challenge.
"A message needs to be sent that in the 21st century society that we live in, such action, such words will not be tolerated.
Image copyrightExpress & StarImage caption Paul Gascoigne made the comment in front of hundreds of people at his An Evening With Gazza show
"It is not acceptable to laugh words like this off as some form of joke."
He told Gascoigne what happened was a "stain on his character".
Gascoigne, whose career included spells at Newcastle United, Tottenham Hotspur and Rangers, changed his plea to guilty before the first witness was called to give evidence.
On his way into court, the retired star stopped to sign autographs, including on a man's chest.
Image copyright
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