When I mentioned online that I had been developing these bitters, I received a stern warning about the toxicity of tobacco infusions. Therefore, I did the math (* see below) and the bitters appear to be safe as nonpotable bitters used dash-wise -- just not for use in large quantities like Angostura and Peychaud's have. If you have any concerns over the use of tobacco or nicotine, please do not make these bitters, use them, or serve them to others. In fact, do not make them at all -- I am just providing the recipe for historical record like others provide Jerry Thomas' Decanter Bitters recipe (has snakeroot which is not too good for you either). Remember: nicotine is bad, bad stuff.
For a name, I thought about how bars around here used to be smoke filled dens of iniquity. After the smoking ban went into effect, it almost felt like something was missing. The bitters were named in tribute to the olden days.
Smoking Ban Bitters
• 12.0 gram Cigar Tobacco
• 5.6 gram Wild Cherry Bark
• 1.2 gram Catechu (Betel Nut, found at Indian groceries or online)
• 1.2 gram Calamus Root
• 1.2 gram Quassia Bark
• 2.0 gram Allspice (~11 berries)
• 2.4 gram Spearmint, dry
• 6 Tahitian Vanilla Bean
• 0.9 gram Clove (10 cloves)
• 4 tsp Vanilla Extract (Bourbon)
• 1 tsp Bay Essential Oil (Pimenta Racemosa)
• 24 oz Whiskey, 100 Proof
Break up larger botanicals into small bits (crack allspice berries, chop up vanilla beans and catechu, etc.). Infuse for 7-10 days. Strain through a coarse strainer, and filter through coffee filters or similar. Bottle. Flavor seems shelf stable for well over a year.
(*) Nicotine Content of Bitters
• Infusion: 12 grams of cigar tobacco, 24 oz spirit (100 proof)
• Cigar Tobacco: <1.5% nicotine by dry weight, generally lower 
• <7.5 mg nicotine per oz bitters (assuming a theoretical 100% extraction, that the cigar was 100% dry, and highest nicotine content of the range in cigar tobacco)
• 0.5-1.0 mg nicotine/kg body weight can be a lethal dosage for non-smoking adult humans [2, 3]
• 150 lb (68.2 kg) adult = 34.1-68.2 mg nicotine
• At the highest theoretical amount of nicotine extraction using this recipe (7.5 mg nicotine/oz) and the lowest toxicity (34.1 mg), a person of 150 pounds or more would need to drink over 3 shots (4.55 oz).
• Therefore, this recipe should be used dash-wise only and kept away from any human that should not be drinking alcohol or ingesting nicotine in the first place (like children, elderly, pregnant). And no use of these nonpotable bitters as potable ones should ever be attempted regardless of what has been with Angostura or Peychaud's.
• Repeat: Do not use tobacco infusions as you would normal potable spirits like whiskey, vodka, or gin.
Postnote 3/24/11: At the highest theoretical level, 1/8th oz of the bitters (several dashes) would still be less than the average amount of nicotine inhaled in a cigarette (around 1 mg).