HARRISBURG — Pennsylvania's lottery sales stumbled in the just-ended fiscal year — as slot machines came on line — finishing flat after a half-decade of huge gains spurred by bigger games, more retailers and glitzier advertising.

After subtracting expenses, commissions and prize money, the lottery contributed less money to state coffers than the prior year for the first time since 2001.

State lottery officials insisted the arrival of slot-machine gambling in Pennsylvania had nothing to do with the slowdown. They said the year's results were strong and would continue to generate ample revenue to finance the state's considerable programs for senior citizens.

In many other states from Delaware to Iowa, lottery sales stagnated as casino-style gambling expanded over the past decade or so. Some state lotteries rebounded quickly, while others struggled for years.

Ed Trees, the Pennsylvania Lottery's executive director, said the bottom line was hurt mostly by Powerball ticket sales that slackened without a giant jackpot to drive interest.

"If you look at our numbers this year and the fact that Powerball was off, if that doesn't happen, we're pretty much on projection for the year," Trees said.

Trees also said it was inevitable that sales would slow after five years of gains as high as 16 percent.

Overall, sales rose $6 million, or one-fifth of a percentage point, to almost $3.1 billion in the 12 months that ended June 30. State officials had projected a 5 percent sales bump and now expect sales to rise a more modest 2.6 percent in the coming 12 months.

The Pennsylvania Lottery contributed $949.1 million to pay for state programs for the elderly, including prescription drug subsidies, down from $965.2 million in the fiscal year that ended June 30, 2006.

Powerball sales recorded $273.8 million in sales, down from $385.2 million in fiscal 2006, but still higher than any other year since 2003, when the Pennsylvania Lottery introduced the multistate jackpot game.

Increasing sales of instant tickets — the lottery's biggest product — also slowed significantly to 7 percent, the smallest step since 1999.