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Bottom line: Prevent further injury. On that grounds alone, I'm not allowing this kid to play. I don't care what level of play, I don't care if it's against the rules, and I don't care how much hot water I get in with my association. I simply will not continue the game with this player in it without a verified opinion from a doctor that it is safe.
Next-to-bottom line: Don't get sued. If there IS further injury, you certainly can be held accountable for this (whether or not you are technically legally liable), and there are PLENTY of judges and juries out there that will hold you at fault, at least partially. Get a doctor's permission, get it writing, have it witnessed by every member of the crew (and preferably someone mostly unaffiliated with the game/team, like the on-field EMTs, as well), and keep a copy for at least the next year. It's paranoid, but it's a litigious society, and there are parents and lawyers who will certainly come after you.
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