Forfeits (9)
'forfeits' is the definition.
(I've seen this in another clue)
This is all the clue.
(Other definitions for loses that I've seen before include "Goes down" , "Is unable to find" , "Mislays or is defeated" , "Misplaces" , "Misoplaces" .)
(Other definitions for penalties that I've seen before include "parking fines" , "Fines or forfeitures in Palestine" , "Punitive impositions in Palestine" .)