Mistakes at crucial times ultimately cost Otago - and making mistakes is partly the reason why it sits in the bottom reaches of the Air New Zealand Cup table.
Otago coach Steve Martin admitted as much after the match, saying it was up to individuals to take responsibility and make sure they do not make simple errors.
Otago was poor at receiving kick-offs, and some of its kicking was ill-directed and at the wrong time.
But there was much to like in the performance of the home team, despite coming up short on the scoreboard.
Its line-out was again solid and there was good work at the breakdown.
Fullback Ben Smith was outstanding, setting up two tries and then scoring near the end to give his side a shout.
Waikato had opened like a house on fire and should have been three tries up within 20 minutes.
But all it could gather was a try to centre Jackson Willison and, when Smith grabbed the ball inside his own half and beat four defenders to set up flanker Adam Thomson for the try, Otago had an 8-7 lead.
Willison then got his second try after some average Otago backline defence.
But back came Smith with another great break and the ball ended up in the hands of winger Karne Hesketh who charged over.
First five-eighth Glenn Dickson had earlier banged over a booming 56m penalty after Waikato skipper Liam Messam was yellow carded for illegal play at the ruck.
The game meandered for a while in the second half but Waikato went further ahead when prop Hikairo Forbes scored.
Smith then scored a try after Otago went 10 phases and, with five minutes left, the Mooloo men were ahead by just one.
But Otago gave away territory and the ball was moved wide and winger Tim Mikkelson scored to seal the win.
Apart from Smith, stand-outs for Otago were loose forwards Thomson and Alando Soakai, while halfback Sean Romans more than shared the honours with All Black counterpart Brendon Leonard.
Prop Sam Hibbard continued his good form.
Best for Waikato was Messam, and lock Kevin O'Neill while hooker Aled de Malmanche may run hard but he needs some hard study at the school of line-out throwing.
