Mr Downy, a former NSW minister for sport and racing, tendered his resignation on Tuesday, almost three years after he was appointed.

He will become general manager, corporate affairs, at The Star, a position which will could involve lobbying the NSW Coalition government.

However, The Star has said this aspect of the job will not begin for several months while Mr Downy familiarises himself with the role, if at all.

Mr Downy has a history as a gambling industry lobbyist, having worked as chief executive of the Australasian Casino Association and most recently the Australian Wagering Council, which represents online bookmakers.

He is the second figure associated with the NSW Coalition government to take such a position after Rod Bruce, chief of staff to former deputy NSW premier Andrew Stoner, went to work for its owner, Echo Entertainment, in December 2013.

It is understood Mr Downy had flagged to the party he would not seek to renew his appointment as president at the NSW Liberal Party's annual meeting in October.

Current party vice-president Trent Zimmerman is a leading contender to take over as president.

News of the appointment comes as The Star gears up to go into battle with billionaire James Packer for a share of the lucrative Asian high roller gambling market in Sydney.

Mr Packer's company, Crown Resorts, has been granted a licence to run a high roller casino – officially referred to as a restricted gambling facility due to an absence of poker machines – at Barangaroo from November 2019.