A go-kart operator that allowed drivers to dress up as Mario characters and drive through major Japanese cities has lost a court battle with Nintendo.

The video game company said the MariCAR go-kart service did not have permission to allow drivers to dress up as its characters.

Japan is one of the only countries in the world that allow go-karts to drive on public roads, JapanToday reports.

However, the MariCAR website urged drivers not to race each other or throw red shells like in the famous Mario Kart video game series.

The go-kart company, now renamed Mari Mobility, has said it is considering its future following the ruling.