OMG.. I think I got it.
1. I downloaded the latest build of retroarch (I think I had an older build which was causing issues)
2. In retroarch program itself, i did the online update and added the Nestopia core. I didn't scan for any games. Then I closed the program.
3. In Attract mode my configuration is as follows:
Executable: /applications/retroarch.app/Contents/MacOS/RetroArch/
Command Arguments: /applications/retroarch.app/Contents/Resources/cores/nestopia_libretro.dylib "[romfilename]" -L
Rom Path(s): $HOME/Documents/ROMS/NES/
4. When I launched Monopoly through Attractmode, it launches. Only thing is, it launches behind Attractmode and not in front, so I need to solve this now without command + Tabbing to retroarch. Any thoughts on this?