Blackpool Council plans to state in its licensing policy that pubs that consistently flout the smoking ban face having their licences revoked or suspended.
It is the first time a council has been known to explicitly state what will happen to the pub's licence if the ban is flouted.
I don't think the smoking ban per se has anything to do with the licensing objectivesPeter Coulson, MA legal editor
It comes as Blackpool host Hamish Howitt faces a review of the premises licence at Delboy's Sports Bar, due on 19 October, for allegedly flouting the smoking ban.
The council claims two licensing objectives - prevention of crime and disorder and protecting children from harm - are being breached.
Howitt is also due to appear before magistrates on 5 November on charges relating to breaches of the ban.
Blackpool's draft licensing policy says: "The licensing authority recognises that premises licence holders who do not comply with the prohibition on smoking in enclosed public places will be dealt with under the relevant legislation, and ordinarily will not be brought to its attention through the review process.
"Premises licence holders, however, who persistently fail to comply with the legislation, and/or positively promote non-compliance should be brought before the panel on review and can expect that suspension or revocation of the licence would be the normal course of action."
MA legal editor Peter Coulson said: "I don't think the smoking ban per se has anything to do with the licensing objectives.
"Other legislation covers it and I think it's out of place for Blackpool to threaten revocation.
"I suspect they can see there is a link between the licensing objective of crime, but this is very low-level crime.
"I think revocation of the licence because of defiance of the smoking ban would possibly be overturned on appeal, although I think the magistrate would want a signal of good behaviour."