Normally the opto transmitter shines bright red LED light into the opto receiver. Through some transistors on the opto amplifier board (and logic gates) the CPU "sees" this as an open switch. If the transmitter LED fails (or the light is blocked by the ball), the receiver changes voltage and the switch is detected as closed.
The opto went on / off during a switch test when the ring was banged or the glass slid back in place sharply. Looking at the opto amplifier board mounted to the right of the backboard there was a 2-pin connector that had been bent right over, probably the transmitter opto to the ring. Turned off game, bent the pins up straight and plugged back in connector. Switch test showed the "ring made" working only when it should again (stick finger in the ring).
At least that fault was fairly easy to diagnose and fix.