RMIT University chancellor Ziggy Switkowski has announced his intention to quit amid a row over his appointment to a controversial casino company.

Dr Switkowski will step down by the end of October “to focus upon his recently announced new board responsibilities”, according to a  from the RMIT council.

The move comes less than a fortnight after Dr Switkowski was named chairman of Crown Resorts, Australia’s largest gaming and entertainment group. Crown faces the potential loss of its Melbourne casino licence after a New South Wales inquiry exposed allegations of money laundering and ruled it unsuitable as operator of a new Sydney casino.

Victoria’s royal commission into Crown’s Melbourne operations, which is due to report in October, has been told that the company owes the state as much as A$480 million (£257 million) in underpaid taxes. A royal commission into the company’s Perth casino is due to report next March.

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An circulated by the RMIT branch of the National Tertiary Education Union demanded Dr Switkowski’s resignation. “Crown Casino has been shown time and again to be a socially destructive force,” it says.

“Given RMIT values include being ‘agents of positive change for our students, the community and beyond’, it is simply untenable that you continue in your role of RMIT chancellor or as a council member whilst chair of Crown Resorts Board.”

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Dr Switkowski’s decision to leave comes less than three months after former Australian deputy prime minister Mark Vaile relinquished an appointment as chancellor of the University of Newcastle amid a furore over his chairmanship of coal company Whitehaven.

Dr Switkowski said his 11 years as RMIT chancellor had been a pleasure and honour. “I will leave with a great sense of pride at what was achieved in that time but, more so, excitement in what lies ahead under the leadership of incoming vice-chancellor Professor Alec Cameron,” he said.

Deputy chancellor Janet Latchford said Dr Switkowski would be missed. “[He] has been a force for positive change and an influential voice for RMIT and the sector across government and industry.”

The council said a search was under way for a new chancellor. Ms Latchford will act in the role if a replacement has not been appointed by the time Dr Switkowski leaves.

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john.ross@timeshighereducation.com