A federal magistrate is tossing a Las Vegas search warrant that led to the arrest of as many as eight people accused of running an illegal, online bookmaking operation last year from posh villas at Caesar's Palace.

The court found that the Federal Bureau of Investigation's warrant application was "fatally flawed" and was "supplemented with material omissions."

To obtain a search warrant, the authorities cut DSL access and posed as the cable guy, gathering evidence along the way that made up the basis for the bulk of a search warrant that resulted in the arrest of high-stakes gambler Paul Phua, his son Darren, and others.

Magistrate Judge Peggy Leen ruled that the failure to mention that the original case was born from the "ruse" meant the judge who signed a search warrant this summer didn't have all of the facts. Nowhere in the search warrant request, however, did the authorities mention that they allegedly saw illegal wagering on computers after posing as technicians who in reality briefly disconnected the DSL.