Otago fullback Israel Dagg kicked 24 points to punish an indisciplined Lions side and help the Highlanders to a 39-29 victory in their Super 14 rugby match in Dunedin.
The South African side were heavily penalised by Australian referee Stuart Dickinson, who also awarded a penalty try to the home team.
Dagg slotted six penalties and three conversions to hand the home side a vital second win and first home victory of the season, though the Highlanders missed a bonus point for four tries when a late score was ruled out.
The Lions, who have yet to win a match in their seven Super 14 games this season, secured a bonus point after scoring five tries but threw the game away by conceding too many kickable penalties.
In the night's other match in Canberra, the ACT Brumbies narrowly beat the Chiefs by 30 to 23.