As long as the skin form is filled out and the proper treatment is followed, they can wrestle. Ringworm doesn't go away in a day, even with the proper medication. It takes weeks. If your child has never had ringworm, congratulations, but mine has and we treat it. If you didn't allow a kid to wrestle with visible ringworm, there wouldn't be many wrestlers left at this point in the season.
I'm sure the skin check was done and the proper forms filled out. Especially if it was that obvious. Remember, some of the new folks may not know what to watch for and it can get pretty far along before someone else points it out.
