Two council officers reported the unnamed driver after they witnessed him placing his mobile phone on the dashboard and tuning in for a football match as he ferried them to a hotel.
The driver had also overcharged his passengers for the local trip.
Following the incident, which took place in June, the driver received disciplinary action.
He admitted two offences of "misconduct regarding the charging of fares" and for failing to "take all reasonable precautions to ensure the safety of passengers", a Charnwood Borough Council spokesman said.
The driver was given nine penalty points, with the warning that if 12 points were exceeded, his taxi operator licence would be revoked.
Speaking to MSN News, the council's cabinet member for regulatory services said: "Our officers were stunned when this taxi driver decided that watching the big match was more important than the safety of his passengers.
"One of the council's key priorities is helping to keep our residents and visitors safe and secure, and we will take action where we find this has been compromised."
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