Calgary bars and lounges with video lottery terminals will be closely watching a provincial court challenge to part of the city's new smoking bylaw.

Filo's Restaurant, acting on behalf of 35 Calgary businesses, filed a motion at the Court of Queen's Bench in December asking for an exemption from the smoke-free rules that took effect on Jan. 1.

Their case will be heard on Feb. 8.

Tim Bardsley, the lawyer for the group, told CBC News on Wednesday that the business operators only want a one-year exemption.

Calgary's new bylaw makes it illegal to light up in all public places, including restaurants and bars. But the city has given one-year exemptions to businesses that have separate ventilated smoking rooms, as well as to casinos and bingo halls.

The establishments mounting the challenge argue they are more like bingos and casinos rather than bars and lounges because a large part of their revenue comes from VLTs, Bardsley said.

Retiree files complaint about Filo's

Businesses that violate the smoking bylaw can face fines ranging from $100 to $300, or an officer can issue a mandatory court appearance and a judge can impose a fine as high as $2,500.

However, Alvin Murray, a city bylaw spokesman, said bylaw officers are issuing warnings for now in order to educate businesses.

The decision to ease the new rules in with warnings has disappointed some Calgarians.

Retiree Bill Cobb filed a complaint with the city about Filo's after he and his wife tried to stop in for lunch this week.

"I popped my head in the door and looked around and there were people on the video machines and at the bar that were smoking."

Calgary resident John Bubric has filed a complaint with the city about another restaurant with VLTs.

"I expected a smoke-free environment. We sat down and first thing we noticed, people across from us were smoking," he said.

As of Wednesday, the city had issued three warnings to businesses and fielded 30 inquiries about the new bylaw, some of which were complaints.

The city will continue to enforce the bylaw at the businesses involved in the challenge until directed otherwise, Murray said.