New South Wales Premier Barry O'Farrell has lost his second minister in a month, with Sports Minister Graham Annesley announcing he is quitting to become the chief of the Gold Coast Titans.

A tearful Mr Annesley told Parliament there were many aspects of politics he did not care for and he has always felt more at home as a sports administrator.

"I believe I've been a good minister, but equally I'm only too happy to admit I don't believe myself to be a very good politician," he said.

He said he was sorry for letting the Premier, his colleagues and constituents down by leaving halfway through a term and sparking a by-election in his seat of Miranda.

"I obviously acknowledge the magnitude of my decision and accept I'm letting a lot of people down," he said.

But Mr O'Farrell said there was no need to apologise.

"Frankly, I couldn't have asked for a better sports minister," he said.

"Obviously I am disappointed that we're losing him, not only as a colleague, a friend and a Member of Parliament, but as someone who through his portfolio was making a real difference to this state."

Opposition Leader John Robertson also paid tribute, but joked Mr Annesley was taking a job with the wrong team.

"I was hoping you were coming in here to announce you were going to Parramatta," he said.

Mr Annesley was given his portfolio immediately after being elected as the MP for Miranda when the Coalition won the 2011 state election.

The former rugby league referee is the second member of Mr O'Farrell's ministry to depart in less than a month, after the recent sacking of former finance minister Greg Pearce at the start of the month.

From next month, Mr Annesley will be the new chief executive of the Titans NRL club.

He will replace Titans boss David May, who stood down earlier this year for personal reasons.

The Premier's office says it will announce Mr Annesley's replacement in due course.