One of Australia’s leading online sports betting agencies faces a legal battle after being slapped with a temporary Federal Court ban amid a naming rights dispute.

Sportsbet is fighting rival CrownBet’s plan to merge its two existing businesses under the name “Sportingbet”, which the former alleges will be misleading or deceptive.

The Federal Court of Australia this week slapped a temporary ban on CrownBet’s proposed rebrand, saying it would inflict “significant” loss on Sportsbet if it won a trial over the naming rights.

Crown Resorts sold its 62 per cent stake in CrownBet to The Stars Group earlier this year.

Shortly afterwards, CrownBet acquired William Hill Australia and then announced plans to bring customers from the two businesses under the single “Sportingbet” brand.

The Federal Court on Wednesday accepted Sportsbet’s submission that “consumers will likely have difficulty in accurately distinguishing between the two names”.