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smokeasy

n. An establishment where patrons are permitted to smoke despite a general ban.

Wikipedia
Smokeasy

A smokeasy (also spelled smoke-easy or smokeeasy) is a business, especially a bar or drinking venue, which allows smoking despite a smoking ban enacted as a criminal law or an occupational safety and health regulation. The term is also used to describe locations and events promoted by tobacco companies to avoid or evade bans on smoking. The word was added to the New Oxford American Dictionary in 2005, although it was used as early as 1978. It is a portmanteau of smoking and speakeasy.