The "Mallrats" filmmaker alleges the shamed producer - who is serving a 23-year sentence in New York for sexual assault and rape - curtailed the movie's theatrical run to stop its then-biggest name from scooping extra income.
The tragic actor, who took his own life in 2014, won his only Oscar for "Good Will Hunting" in 1998.
Smith, who is close pals with the film's leading men and screenwriters, Matt Damon and Ben Affleck, and was an executive producer on the acclaimed 1997 drama, shares the tale in his new book, "Kevin Smith's Secret Stash".
He explains Robin had a back end deal with Weinstein's film company Miramax, which provided for a salary bonus once the film had grossed more than $100 million (£73 million).
"I remember when Good Will Hunting was leaving theaters and it felt weird because it was like, 'Wait? There's all this Oscar buzz, so why would you pull it if it was just making money?' " Smith writes in the book.
"And they did it because keeping it in theaters meant that more of the money would go to Robin, whereas the moment it went to video, the split wasn't Robin-heavy. It was hamstrung because (of) greed."
Matt Damon also won an Academy Award, taking home the best actor title, while Minnie Driver was named best supporting actress.