The 33-year-old man was sentenced to 100 hours of community service, the Swedish news agency TT reported.
The incident happened last summer when the man was watching a soccer game between Sweden and Ukraine in a Malmo park.
The man said the Hitler salute was an "inside joke" between he and his friends and that he was too drunk to realize that the gesture was inappropriate when he did it.
The court nonetheless found the man to have violated Sweden's racial agitation laws, which are meant to protect against harassment of people based on their ethnicity, religion, sexuality and gender.
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