ClubsNSW boss Josh Landis has been sacked after claiming NSW Premier Dominic Perrottet was basing the state's gambling reform on his "conservative Catholic gut".
Mr Landis was quoted in the Sydney Morning Herald this morning saying the premier's position was causing "hyper-anxiety" in the gaming industry.
"I think it's fair to say that the premier has very little understanding of this issue and has acted from his conservative Catholic gut rather than based on evidence," he said.
In a statement released this afternoon, ClubsNSW said the Board had ended Mr Landis' employment as CEO "with immediate effect".
"The Board acknowledges Josh Landis' exemplary service to the industry over more than 15 years through some very difficult times," the statement said.
"We genuinely wish him all the best on his future endeavours."
Mr Perrottet told Nine Radio this morning he was pursuing cashless gaming cards and poker machine reforms, putting him in conflict with the gambling body, "because it's the right thing to do".
Mr Perrottet said Mr Landis' comment was "offensive", and that people in prominent positions would be forced to resign if they talked that way about other religious groups.
"The decision that I've made, and the views I have in relation to gaming in New South Wales, is not informed by the fact that I'm Catholic. It's because I believe this is the right thing to do," he said.
"Now I think it's completely wrong for the CEO of Clubs New South Wales to say that this is ... part of my Catholic faith.
"And I'd say that's offensive, not to me but to people of faith across New South Wales.
"If you replaced the word 'Catholic' with 'Islamic, Jewish or Hindu', you would be resigning before you got to work this morning.
"It's not about faith, and people shouldn't attack people's faith in relation to decision making."
Independent MP Alex Greenwich claimed Mr Landis had turned ClubsNSW into an "NRA (National Rifle Association) style political operation" and had ignored the NSW Crime Commission's damning report on poker machines.
"I've had my policy disputes with the premier on social reforms, but I would never attack him because of his faith. He takes a measured and evidence based approach to reform and encourages robust debate," the Sydney MP said.
Gambling reform has become a hot button issue ahead of the March election, with the government and opposition outlining competing policies.
Mr Landis this afternoon issued a statement to "unreservedly apologise" for the comments.
He said the comments were made in a phone call with a reporter who asked about why the premier was insistent on introducing mandatory cashless gaming and other reforms.
"I want to make it clear that in answering the question I misspoke and should not have referred to the premier's faith," Mr Landis said.
"This was not a premeditated comment or an intentional attack ... rather it was a poor attempt to explain that there is a lack of evidence for the policy and the premier is a moral person who intrinsically wants to help those who are causing themselves harm."
Mr Perrottet this morning declined to comment on whether there had been some "Catholic bashing" in recent days, but said Mr Landis "should reflect on" his words.
"I think it's inappropriate in a modern Australia for people to attack people's faith," the premier said.
"I'm not offended by it, but when you're in politics you become completely desensitise to criticism.
"My position in relation to gaming reform is because it's the right thing to do to stop money laundering in new south wales and to stop problem gambling."