The Exiles trailed to James Collins' third minute opener, before Joss Ladabie's leveller gave them hope.
However, the hosts took control with two quickfire second half goals, as Josh Yowerth and Jimmy Smith scored twice in four minutes.
Newport's Josh Sheehan missed a late penalty in a bad-tempered affair that saw 13 players receive yellow cards.
Newport County boss Graham Westley told BBC Radio Wales Sport: "We were ill-disciplined and I think that came from a lack of work ethic.
"When I walked in the door I knew it was going to be a difficult job. There hadn't been a lot of winning going on.
"You can't just turn off a tap when people are used to losing.
"We have spoken a lot of home truths in the dressing room. We have not been good enough this season."
Match ends, Crawley Town 3, Newport County 1.
Second Half ends, Crawley Town 3, Newport County 1.
(Crawley Town) wins a free kick in the defensive half.
Foul by Rhys Healey (Newport County).
Penalty missed! Still  Crawley Town 3, Newport County 1. Josh Sheehan (Newport County) hits the bar with a right footed shot.
Penalty conceded by Mark Connolly (Crawley Town) after a foul in the penalty area.
Penalty Newport County. Josh Sheehan draws a foul in the penalty area.
Attempt saved. Jordan Green (Newport County) right footed shot from the right side of the box is saved in the bottom right corner.
Substitution, Crawley Town. Kaby replaces Billy Clifford.
Attempt missed. Jimmy Smith (Crawley Town) right footed shot from more than 35 yards is close, but misses to the right.
Corner,  Newport County. Conceded by Andre Blackman.
Josh Sheehan (Newport County) hits the bar with a left footed shot from outside the box.
Substitution, Crawley Town. Adi Yussuf replaces Jordan Roberts.
Foul by Jimmy Smith (Crawley Town).
Jennison Myrie-Williams (Newport County) wins a free kick in the defensive half.
Mark Connolly (Crawley Town) wins a free kick in the attacking half.
Foul by Rhys Healey (Newport County).
Jazzi Barnum-Bobb (Newport County) is shown the yellow card for a bad foul.
Jordan Roberts (Crawley Town) wins a free kick on the left wing.
Foul by Jazzi Barnum-Bobb (Newport County).
Andre Blackman (Crawley Town) wins a free kick on the left wing.
Foul by Jordan Green (Newport County).
Substitution, Crawley Town. Bobson Bawling replaces Enzio Boldewijn.
Attempt missed. Josh Sheehan (Newport County) left footed shot from the left side of the box is high and wide to the right.
Corner,  Newport County. Conceded by Glenn Morris.
Attempt saved. Josh Sheehan (Newport County) right footed shot from outside the box is saved in the top left corner.
Foul by Enzio Boldewijn (Crawley Town).
Jennison Myrie-Williams (Newport County) wins a free kick in the defensive half.
Attempt missed. Jordan Roberts (Crawley Town) left footed shot from the centre of the box is close, but misses to the right.
Attempt saved. Billy Clifford (Crawley Town) right footed shot from the centre of the box is saved in the centre of the goal.
Substitution, Newport County. Finley Wood replaces Ben Tozer.
James Collins (Crawley Town) wins a free kick in the defensive half.
Foul by Scot Bennett (Newport County).
Attempt missed. Andre Blackman (Crawley Town) left footed shot from the left side of the box is too high.
Attempt blocked. Darren Jones (Newport County) right footed shot from outside the box is blocked.
Foul by Billy Clifford (Crawley Town).
Josh Sheehan (Newport County) wins a free kick in the attacking half.
Foul by Andre Blackman (Crawley Town).
Jordan Green (Newport County) wins a free kick on the right wing.
Attempt missed. Rhys Healey (Newport County) right footed shot from outside the box is too high.
Newport County will be the Football League's bottom club on Christmas Day after losing at Crawley.