It supplies a small 5V current whenever the keyboard LEDs (numlock, capslock, scrolllock) are 'on'. MAME blinks these keyboard LEDs in some games (not TMNT, mostly older atari games like Centipede, Asteroids, etc) to simulate the lighted volcano button blinking on the actual machines when coins are inserted. But the IPAC keyboar dLED feature really has nothing to do with MAME -- you can manually toggle the capslock key on and off and the IPAC will still light up the LEDs. And no, you can't just hook up 12V as you've suggested. You need the previously mentioned power circuit.