Bronco Billy's Casino in Cripple Creek began allowing smoking in about 25 percent of its space on Monday.
Mark Murphy, a partner in the casino, said Bronco Billy's has met the minimum sales figures for tobacco to qualify for the exemption.
Stephanie Steinberg of Smoke-Free Gaming of Colorado scoffed at the claim, saying Bronco Billy's has always operated as a casino never as a cigar bar.
The Wild Card Casino in Black Hawk has also claimed an exemption from the smoking ban as a cigar bar.
Murphy said Cripple Creek Police Chief Gary Hamilton checked the smoking area's signs and ventilation on Monday, and police had not written any citations. Hamilton did not immediately return a call from The Associated Press Tuesday.
Murphy said the casino has not advertised the change and the reaction from customers was muted.
"Those that are smokers are happy that they are again being accommodated, and most of the nonsmokers were happy that the majority of the area is still nonsmoking," he said Tuesday.
Murphy and managers of other casinos say the smoking ban, which expanded to include casinos on Jan. 1, has hurt their business.
Casino revenue is down in Colorado's three gambling towns - Cripple Creek, Black Hawk and Central City - and casino owners say the smoking ban is the biggest culprit.
Steinberg said revenues are down in smoker-friendly Las Vegas, too.
Murphy said he doesn't know when Bronco Billy's might see revenue increase now that it has a smoking area, but he predicted any growth would be gradual.
