Holloway was unhappy with the award of a penalty in last week's 2-0 defeat at Manchester United when Palace midfielder Kagisho Dikgacoi was also sent off for bringing down Ashley Young.
However, replays suggested the challenge took place outside the penalty area and Holloway also questioned if it was a foul on Young, who had already been booked for simulation.
Goal-line technology has been introduced in the Premier League this season, but Holloway is adamant that more needs to be done to help officials.
"I don't have sour grapes, it should have been a free-kick outside the box but the job for the referees is getting hard," Holloway said at a press conference.
"You have to be careful. Winning at all costs isn't what this sport is all about.
"I can honestly say I never dived in my life. You are conning your team-mates, so until anyone is brave enough to come out and say it, where are we going?
"It's the state of the game and integrity of the game. The way the game is, it's more a business than a sport isn't it?
"There's so much at stake. The pressure the referee was under at that precise moment at Old Trafford and not getting help from his linesman, just give it to a fourth official to review.
"If you leave the game as it is, it will stay exactly as it is. The game would benefit hugely by trying to do something, especially with the last-man rule which is complete nonsense in my view.
"Why not give a red for the player who is trying to fool the ref. Was it even a foul? But once he (the referee) gave a foul there was no choice. You either book Ashley Young again and send him off, or my fella has got to go. I don't think that is what the (last-man) rule is all about.
"John O'Shea in our game against Sunderland, I don't think he should have been sent off, a penalty would have been enough. Allow refs to ref with their brains, not FIFA telling them what to do.
"We all want to see fairness. Ashley Young was punished. But the next one, was it really a foul? I am not sure there is any contact.
"I don't want the game ruined. It is not goal-line technology you need. When a referee retries it he should sit in the stand with a monitor and he would have got that right. It would have been outside the box. Anyone in their right mind could have seen that.
"The rule regarding goalscoring opportunity is really limiting refs. The fairest thing is to give the fourth official in the stand the chance to have a look on a monitor. You see four or five angles."