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Ocean City for sure...very kid friendly..and not far from A.C. if u have the chance and can take turns watching each others kids at night would give the adults some time to gamble and relax..
For years my cousins rented at Seapointe Village in Wildwood. They LOVED it. I will say it has been a few years since they've been back - there kids are grown and I own a shore house. I'm not sure if it will be out of your price range but you have pools and ocean. Good things about Wildwood is the Boardwalk, mini golf. Close to Cape May so there is the Cape May Zoo and nice shops to visit in the evening.
Sea isle, avalon and stone harbor. All are between ocean city and the wildwoods, you don't have the congestion and they are a short drive to either.
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