Riding on the back of a master class by discarded All Black Stephen Donald, who grabbed 26 points and did not miss a kick, Waikato ran out a convincing 41-15 winner.
Otago only had itself to blame as it got back to 17-15 early in the second spell, after being behind 17-3 at the break, and had the tri-coloured side rattled.
But it took the foot off the pedal, slipped off tackles, and the difference in class, particularly from Donald, became obvious.
The result could have been different had Otago, or specifically Fetu'u Vainikolo, not blown a couple of tries in the first half.
What has happened to the livewire, flashy winger who was talked of as a future All Black a couple of years ago?
Vainikolo's form has gone backwards rapidly ever since he signed for Otago and his blunders last night were costly.
First, the ball was stripped from his hand when he was over the line diving for a try, then five minutes later he dropped the ball 1m from the line with no-one marking him.
Otago needed to create more opportunities, but it is the sort of side that needs to take every opportunity that comes along.
Last night, as has been the case for much of the season, it did not, and that is why it recorded its ninth loss of the season and will stay at the bottom of the table for another week.
For most of the first 60 minutes Otago was competitive, as it tackled well and forced the Mooloos to look wide.
But slowly, Waikato, which was never behind, pulled away, helped by the skills of Donald and All Black fullback Mils Muliaina .
Otago started well in the second half, putting phases together and getting behind the home side's defence, and captain Alando Soakai and halfback Sean Romans crossed for tries.
But Otago could not get in front, and when Muliaina scored halfway through the second half to haul Waikato clear, the fat lady was singing.
Donald looked a million dollars, threatening the line every time he got the ball.
He scored the final two tries for Waikato and his kicking in general play was fantastic.
Otago was not helped by the sin-binning of prop Halani Aulika for an alleged swinging arm, though it was hard to see why the penalty was so severe.
The prop had been getting round the field, though the Otago scrum struggled to match Waikato's.
Blindside flanker Hoani Matenga had a good game for Otago, Soakai was solid, and Romans' form continues to move in the right direction.
It was a nightmare start from Otago, which conceded a try after two minutes.
It stood firm for a series of phases but then the ball went wide and players fell off winger Henry Speight, who barged through four defenders to score.
Otago needed to score some points after dominating territory in the latter stages of the first half but thanks to the fumbling hands of Vainikolo it came up short.
Waikato was making basic errors and looked to get the ball wide too quickly as the Otago defence stood firm.
But it scored its second try right on the stroke of halftime when Donald threw a beautiful ball to big centre Save Tokula, and he waltzed through a yawning gap to score.
ITM CUP - THE SCORES
• Waikato 41
Stephen Donald 2, Mils Muliaina, Henry Speight, Save Tokula, Donald 2 pen, 5 con.
• Otago 15
Alando Soakai, Sean Romans tries, Glenn Dickson pen, con.
Halftime: 17-3.
