According to the news, the indoor smoking-ban movement stalled because

As recently as last year, many states and major cities seemed ready to adopt complete indoor smoking bans. But the movement to kick all smokers outdoors has stalled as the recession worsens and lawmakers fear hurting business at bars, restaurants and casinos. In Colorado, lawmakers are considering easing the rules after they banned smoking in most bars, restaurants and casinos.
    Opponents of indoor bans insist they are not just blowing smoke about the economy. "To say that people want to roll back smoking laws because of the economy, it’s absurd," said Karen Blumenfeld, who runs the New Jersey Group Against Smoking Pollution. "We might as well repeal child-labor laws to make factories more profitable. It makes no sense."
    Health advocates are also citing the economy to argue their side, too. With state budgets burdened by rising health care costs, banning smoking saves the government money in the long run, they say.