I'd bet it works the similarly to how the iCade works, and acts as a physical keyboard instead of a bluetooth one.
It's likely converting each axis-on, axis-off, button-on, and button-off action as a keypress that the software can interpret.
So since the inputs are the same, the game doesn't really know it's not an iCade. It just knows it's keyboard inputs.
Will be interesting to see if I'm right.
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