Yeah you might need it for some 2 player games. For example, in TMNT, it's a 4 player game. But I'm pretty sure you can't insert coins only in the first slot and give credits to each player. Each player has his own coin slots dedicated to them. They have to insert coins in their own slots to give themselves credits.
An alternative idea is that you could have one master coin button, and in Mame, assign that button to all the coin buttons, so everytime you press it, it gives credits to everyone.