Is Mitch Daniels in danger of losing his libertarian supporters?

Indiana Governor was seen as an early favorite for 2012 among libertarian-leaning Republicans

From Eric Dondero:

This is a real dissapointment. Strike Mitch Daniels from the list of likely Republican presidential candidates acceptable to the GOP's libertarian wing. He's about to ban smoking statewide.

From the Vending Times, Jan. 24:

INDIANAPOLIS -- Bars with customers 21 and up, casinos and private clubs would be exempt from a workplace smoking ban law that passed the Indiana House of Representatives on Jan. 24 by a vote of 56 to 33. The law continues ban smoking in restaurants.

The state Senate will hold hearings on the bill (HR 1018), but passage is uncertain, said officials.

Tobacco opponents said they are hopeful that a comprehensive ban which includes bars and casinos will pass next year.

Gov. Mitch Daniels said he would sign a smoking ban into law if given the opportunity.

From HoosierAccess.com:

Banning smoking in true public places like government buildings is the right thing to do. But while restaurants and other businesses may be seen as “public places” they are actually private property. Government has no business telling a private property owner that he may not allow consenting adults to use a legal product on his property. The property owner should be allowed to run his business as he sees fit.

Editor's comment - If he signs this bill, it will be an instant disqualifier from support of the GOP's libertarian wing.