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Your question is a bit misleading. Gambling is not legal on rivers in general. However, there are some states in the Midwest that have legalized gambling only on riverboats.

The reason for this is based on history. During the 19th century, many riverboats that traveled the major rivers of the Midwest had gambling on board. In order to get gambling legalized, proponents pointed to this historical fact to convince legislators or voters to approve gaming in various states.

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