State Sen. Donna Mercado Kim said yesterday she may propose a bill this session to allow electronic gambling such as slot machines in urban resort areas like Waikiki to help generate revenue for the state.

Kim, the chairwoman of the Senate Ways and Means Committee, said the bill would likely be limited to Honolulu and to designated sites such as hotels. "Basically, it would be contained and geared more for visitors," she said.

Hawai'i and Utah are the only states without legalized gambling. Bills to legalize gambling are usually proposed at every session of the Legislature, but powerful opposition — including from U.S. Sen. Daniel K. Inouye, D-Hawai'i — has helped stop the concept from advancing.

U.S. Sen. Daniel Akaka, D-Hawai'i, has also had to stipulate to his Senate colleagues that gambling would not be an option for Native Hawaiians as part of his federal recognition bill.

State House and Senate leaders said there are no specific plans to consider legalized gambling to generate state revenue and help close the state's budget deficit.

Gov. Linda Lingle, who has opposed gambling in the past, noted Monday that gaming had been mentioned in the context of the budget but did not take a position other than to say everything should be on the table.

"We do not have any specific gambling proposal," said Linda Smith, the governor's senior policy adviser. "We do know that there are a lot of options being discussed and, I think, we'll continue to see a lot of options being discussed."

Some lawmakers said privately that Kim is attempting to "nudge the issue along" but doubt whether a bill could move.

Mainland gaming interests, if they thought lawmakers were serious, would likely compete heavily for the tourism-based Honolulu market. Locals have also shown an appetite for gambling by making Las Vegas among their top vacation destinations and sustaining a thriving underground of illegal sports betting, card games and cockfighting.

Kim, D-14th (Halawa, Moanalua, Kamehameha Heights), first mentioned gaming to the Star-Bulletin on Friday as an option to generate revenue for the state. Kim also told The Advertiser on Friday that she wanted to look at revenue-generating proposals before considering any tax increases.

Asked what the reaction among other Senate Democrats has been to her idea, Kim said: "Lukewarm."