AUGUSTA – A Veterans of Foreign Wars post in Old Orchard Beach has agreed to pay $2,600 in fines and surcharges to settle a case with the state over smoking violations, officials said Monday.

The post admitted to 100 counts of allowing public smoking and agreed to pay the fines shortly before a scheduled hearing in Biddeford District Court, the Attorney General’s Office said.

Tobacco control coordinator John Archard said the state investigated the post after getting complaints from businesses in the area that the VFW was stealing customers away by allowing members of the public to come in and smoke.

Smoking is allowed at private clubs, but is against the law at bars, pool halls and other businesses that are open to the public.