Mmm, well if I look at the close up pics of the CP, you can see that there are arrows in 8 directions. Combined with what Kremmit says about the clicks on the Bandido, my guess is that this is a rotary switch with 8 positions. This would also explain why some info says that it is two joystick controlled, because you could very well use a 2nd joystick instead of the rotary knob. Also a good option for playing this in Mame. By default it doesn't do very much in mame but shooting...
EDIT: thinking again about this: if the rotary has really 8 different positions (so not left-up, right-up etc. but a single contact for those directions ) then it could be a bit harder to recreate this...
EDIT2: I checked the manual on KLOV and the rotary is a 4 switch connection, just like any 8-way joystick. It is indicated on the schematic as SROT,WROT,EROT,NROT, so for every ddirection (south,west,east,north) and rot from rotational.
However there is also a sub set of these, including etc. My guess is that this was for the cocktail with two cp's on each side.
So it should be very easy to play this in MAME with two joysticks...
Regretfully, no news about the cocktail yet.