Judge Philippa Cunningham discharged the man without conviction after he pleaded guilty to a charge of performing an indecent act.
Protest spokeswoman Leonie Morris, of the Coalition for the Safety of Women and Children, said she was outraged by the decision, which sent the wrong message about sexual assault on children.
"One of the horrifying aspects of this case was the so-called 'reason' for the assault was that he was under the influence of alcohol and we are sick to the back teeth of this being used as an excuse. It is not an excuse.
"Unfortunately, we still do live in a society that talks about prioritising children but doesn't do that in practice. This Government spends millions and millions of dollars on rugby but peanuts on protecting children from child sexual assault.''
The court should have directed the man to receive sexual offender treatment to ensure that he doesn't offend again, she said.
"This man has not had treatment. What's to stop him from sexually assaulting another child in the future?''
The man's lawyer, Marie Dyhrberg, told the court her client should be allowed to keep his record clean. She said a conviction would make it hard for him to work again as a comedian.
Judge Cunningham said the consequences of a conviction would outweigh the gravity of the offence.
She also granted the man permanent name suppression to protect the identity of his daughter.
"He's a talented New Zealander. He makes people laugh. Laughter is an incredible medicine and we all need lots of it,'' the judge said.
