There's not a ton for kids to do in the casinos/hotels in Atlantic City. Some of the hotels have pools for the kids - Bally's is on the Boardwalk and has a separate kids pool and arcade game area. But the kids will most likely want to spend time on the Boardwalk and on the beach. FYI, AC just rebuilt its beaches, so they are nice and wide again with beach bars. If I had to choose a place with kids, I'd choose Bally's. The Claridge tower is older, but it has actual connecting rooms so you can put the kids in one room and hang out in the other. It's also right in the middle of the Boardwalk, and you don't have to go through the casino to get to the beach.
There are also kid-friendly restaurants nearby - Johnny ROckets and the RAinforest CAfe.
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