Green’s Dictionary of Slang

1. physical or emotional pain, damage or loss.

1811		Sporting Mag. XXXVIII. 140/1: Silverthorne, with timidity, arising no doubt from punishment in the first round, kept away from his adversary.
1829		Egan Boxiana 2nd Ser. II 97: Burns was not reduced by the punishment he received.
1862		Thackeray Adventures of Philip (1899) 128: Tom Sayers could not take punishment more gaily than they do.
1891		Licensed Victuallers’ Gazette 3 Apr. n.p.: M’Carthy put in a lot of clinching to save himself from punishment [F&H].

2. (gay) taking an extra-large penis either in the mouth or the anus.

1941		G. Legman ‘Lang. of Homosexuality’ Appendix VII in Henry Sex Variants.
1965		Guild Dict. Homosexual Terms 37: punishment (adv., adj.): Accepting an uncomfortably large penis orally or anally.
1972		B. Rodgers Queens’ Vernacular 161: punishment 1. an uncomfortably large penis 2. accepting such a cock into the mouth.