The UK Office of Fair Trading is investigating whether the £35m acquisition of gaming and amusement machine manufacturer Barcrest by US-based Scientific Games breaches competition rules.

New York-based Scientific Games last month agreed to buy Barcrest. The deal was subject to UK competition approval and Scientific Games said it expected to close during the third quarter of 2011.

Now the OFT has opened an investigation into whether the deal would "result in a substantial lessening of competition" in the gaming and amusement machines sector, reports UK press.

Scientific Games already owns The Global Draw, which claims a 43 per cent market share and operates 18,000 machines in more than 3,500 venues, including major bookmakers, as well as Games Media, which specialises in operating amusement arcade machines in pubs.

No comment from Scientific Games was available at the time of writing.