Alot of people say wireless is bad for gaming, and I kinda agree. If you're making a cab, then why not just use a regular wired trackball? Wireless can be a good thing, but if its just going in a CP... On the other hand, I use my wireless KB/mouse to play all my games and I never have problems. The thing that may get you is the wireless connector must be aimed directly at the trackball. Im pretty sure it will work in mame because it plugs into the computer just like any other trackball/mouse.
You can use the wireless trackball, but wired will be much better if youre playing fast-pased games...