Traditional on-course bookies fear they will be sent out of business under new betting laws.

New federal regulations will stop bookies taking bets on credit from punters over the phone known as ‘on the nod betting’.

Currently, up to 80 per cent of on-course bookies’ business is done on credit.

Victorian Liberal MP Dan Tehan says it’s a tradition which shouldn’t be jeopardised.

‘On-course bookies have been allowing betting on the nod, it is part and practice of what they do,’ he told 3AW Breakfast.

‘It’s iconic to our spring racing carnival.

‘Anyone who knows how the industry operates knows that this is part and parcel of it, part of our history.

‘Why should we jeopardise that for no good reason?’