Troy Grant has been named as the new Minister for Hospitality, Gaming and Racing as well as Minister for the Arts.
He takes over the portfolios from Nationals counterpart George Souris.
The promotion is part of a wider reshuffle of the cabinet by the new Premier
The new cabinet:
* Mike Baird - Premier, Minister for Infrastructure and Western Sydney
* Andrew Stoner - Deputy Premier, Minister for Trade and Investment, Minister for Regional Infrastructure and Services, Minister for Tourism and Major Events, Minister for Small Business and Minister for the North Coast
* Gladys Berejiklian - Minister for Transport, and Minister for the Hunter
* Adrian Piccoli - Minister for Education
* Mike Gallacher - Minister for Police and Emergency Services, Minister for Industrial Relations, Minister for the Central Coast, and vice-president of the executive council.
* Duncan Gay - Minister for Roads and Freight
* Anthony Roberts - Minister for Resources and Energy
* Jillian Skinner - Minister for Health and Minister for Medical Research
* Andrew Constance - Treasurer
* Pru Goward - Minister for Planning, and Minister for Women.
* Brad Hazzard - Attorney-General and Minister for Justice
* Gabrielle Upton - Minister for Family and Community Services
* Katrina Hodgkinson - Minister for Primary Industries, Assistant Minister for Tourism and Major Events.
* Kevin Humphries - Minister for Natural Resources, Lands and Water, and Minister for Western NSW.
* John Ajaka - Minister for Ageing, Minister for Disability Services, and Minister for the Illawarra.
* Stuart Ayres - Minister for Fair Trading, Sport and Recreation, Minister Assisting the Premier on Western Sydney.
* Victor Dominello - Minister for Citizenship and Communities, Minister for Aboriginal Affairs, Minister for Veterans Affairs, Assistant Minister for Education.
* Rob Stokes - Minister for the Environment, Minister for Heritage and Assistant Minister for Planning.
* Troy Grant - Minister for Hospitality, Gaming and Racing, and Minister for the Arts.
* Dominic Perrottet - Minister for Finance and Services
* Paul Toole - Minister for Local Government
* Jai Rowell - Minister for Mental Health and Assistant Minister for Health
EARLIER: Dubbo MP Troy Grant is shaping up to be one of the big winners from a cabinet reshuffle that is expected to be announced this afternoon.
Four senior ministers are facing the axe and Mr Grant is believed to be in the running for a cabinet position, along with fellow National Party member and Bathurst MP Paul Toole.
New Premier Mike Baird is reportedly considering dumping Attorney-General Greg Smith and Hospitality and Racing Minister George Souris .
Last night it emerged Mr Smith, Mr Souris as well as Environment Minister Robyn Parker and Local Government Minister Don Page are set to be axed from the ministry.
Pittwater MP Rob Stokes, Castle Hill MP Dominic Perrottet and Wollondilly MP Jai Rowell, all Liberals, are to be being promoted along with Mr Grant and Mr Toole. Hornsby MP Matt Kean and Baulkham Hills MP David Elliott are expected to be named as parliamentary secretaries.
The sacking of Mr Smith as Attorney-General will be seen as a victory for law-and-order hardliners who have been critical of his support for bail law reform and vocal opposition to mandatory sentencing.
Last year Mr Smith, a former deputy director of public prosecutions, declared mandatory sentencing was an ''ineffective crime fighting tool''. Mandatory minimum sentences were a centrepiece of the government's response to alcohol related violence in February but have been blocked by the upper house.
Ms Parker - a surprise choice as environment minister by former Premier Barry O'Farrell after the 2011 election - has had a chequered time as Environment Minister, most recently drawing criticism over the controversial draft masterplan for the Royal Botanic Gardens and the Domain.
The promotion of Mr Stokes, a parliamentary secretary for renewable energy, indicates he may be in line to take on the environment portfolio.
Mr Perrottet, a leading rightwinger, is chair of the Parliament's legal affairs committee but not expected to be made attorney-general. There was speculation Planning Minister Brad Hazzard may be given the role.
Community services minister Pru Goward will take on planning. Sports minister Gabrielle Upton is tipped to take over community services.
The promotion of Mr Rowell, who is government Whip, will be seen as as another nod to the party's right
faction which had been pushing for better cabinet representation than existed under Mr O'Farrell.
The dumping of Mr Souris from cabinet is perhaps the most surprising given his role in overhauling the liquor licensing regime following the fatal assaults in Kings Cross on Thomas Kelly and Daniel Christie.
Mr Baird is expected to announce the full details of his new cabinet later today before it is sworn in tomorrow at 10am.
Assistant ministers will also be appointed to the key portfolios of health, education and planning to provide extra support. These are likely to be ministers holding related junior portfolios. The example given was the Minister for Mental Health - currently Kevin Humphries - who would be made assistant health minister.
Transport Minister Gladys Berejiklian and Education Minister Adrian Piccoli will retain their portfolios.
Mr Baird confirmed on Monday that he would not hold on to the Treasury portfolio to deliver the budget on June 17 as he needed to focus immediately on his new role. As his predecessor Barry O'Farrell did, Mr Baird will also become minister for western Sydney.