The proposed merger of Britain’s biggest football pools operators was under threat last night after the deal was referred to the Competition Commission.

The Office of Fair Trading (OFT) said that the acquisition of Vernons Pools by Sportech, which owns the Littlewoods and Zetters operations, could lead to punters facing higher prices or lower payout ratios.

Sportech, in which Trevor Hemmings, the owner of Blackpool Tower and Pontins, has a 29 per cent stake, said it was disappointed at the OFT’s decision and was now considering what action it should take in light of the decision.

Analysts said that with the inquiry likely to take almost six months, the delay could force Sportech to withdraw its estimated £50 million bid.

The acquisition of Vernons from Ladbrokes would give Sportech a 99 per cent market share. However, the company had been confident it would not be referred because of the loss of 90 per cent of pools players to the National Lottery and the boom in betting on football over the internet.

But Simon Prichard, director of mergers at the OFT, said: “The remaining customers are mostly dedicated players spending almost £80 million a year. Other evidence before us clearly supported the larger number of consumer concerns we received.”

Shares of Sportech fell by 1¼p to 14¾p.

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