The visitors exploited the University Oval's limited dimensions, peppering the boundary to reach a formidable 297.
Black Caps all-rounder Jacob Oram took centre stage, whacking 78 and taking three for 48 to complete an impressive match.
He combined in a 121-run stand for the fourth-wicket with Tim Weston.
The pair came together with the innings teetering at 60 for three and the partnership provided the platform for an all-out assault during the batting power-play.
Otago used four bowlers in the five-over period in a futile attempt to stem the flow of runs.
Yasir Arafat and Neil Wagner were both smashed for 17 runs and quickly replaced.
Even Ian Butler, who mostly bowled well to take four for 45, went for 19 runs.
Only Warren McSkimming was able to put the brakes on, getting through two relatively frugal overs at a cost of 12 runs.
"We didn't execute in that power-play at all and we were punished for that," Otago coach Mike Hesson said.
"That power-play took it away from us and a lot of that was our doing. They fed off some inaccurate bowling."
The loss leaves Otago with just one win from four matches and in desperate need of a win over Canterbury in Timaru on December 31.
"I think it is a must-win, really. If we don't win that we leave ourselves in a very difficult situation. We've had three games where we've got ourselves into a position where we could win and we weren't good enough in the critical moments."
Fresh from a record partnership of 428 in a Plunket Shield match, Jamie How and Peter Ingram got Central off to a blistering start - How with some beautiful drives and Ingram with an ugly series of thick edges.
Ingram managed 23 before he tried to work Wagner into the on-side without moving his feet a centimetre and was bowled.
It was poor execution from a player some say should have played for New Zealand by now.
How, though, looked every bit a class player, producing some delightful drives and getting through to 31 off 22 balls before he was, perhaps, unlucky to be given out lbw.
With Central having slumped from 54 without loss to 60 for three, Weston and Oram were able to score freely while rebuilding the innings.
Oram looked scratchy early on but found a more menacing rhythm.
Having scored 20-odd he took half a step up the wicket and lofted Nathan McCullum back over his head.
The ball clunked into the sight screen for six.
He eventually holed out in the first over of the batting power-play but, by then, he had put his side in a very strong position.
Weston was happy to collect his runs and matched the pace set by Oram but it was the big left hander who reached 50 first, thumping McCullum down to long off for a boundary.
Weston brought up his 50 moments later, clipping the ball to midwicket for a single.
Butler got the breakthrough the home side had been searching for when Weston got a faint edge through to the keeper after trying to run the ball down to third man.
Former Otago all-rounder Kieran Noema-Barnett whacked a six and five fours in a hard-hit innings of 34 from 20 deliveries, and Graham Napier and George Worker played useful cameos in the power-play as Central closed on 300.
Hamish Rutherford hit the first ball he faced for four to get Otago's reply off to a positive start.
However, on 18 the 20-year-old left hander sliced a drive straight to point.
His opening partner Shaun Haig, who had looked promising, then charged Oram and was bowled for 32.
Haig's departure left Otago's prospects resting with its most experience pair, Neil Broom and Craig Cumming.
Both have been in fine touch this summer and if the home side was going to threaten the target, they would have needed to score the bulk of the runs.
Noema-Barnett celebrated accordingly when Cumming mistimed a pull shot on 29 and was caught in the deep and, when George Worker bowled Broom (5) after the batsman tried to heave the delivery over mid wicket, the game was all but over.
Nathan McCullum (26) and Butler (43) launched an entertaining counterattack but were left with too much to do.
