Yes! Kids are allowed at your discretion. Keep in mind the music will not be clean, there will be drinking, loud music, and dancing.
There are cabin rentals onsite at alpine lake resort, visit your favorite booking site (Airbnb, hotels.com, vrbo, etc) and search alpine lake resort. The resort is 30 minutes away from deep creek lake. There are also plenty of great hotels and motels around the area as well!