Isn’t she going to be represented by lawyers? I’d guess they will be doing the talking but I may be wrong, never really been to a court proceeding. I have watched some Law and Order though!
I don’t think the state is in much of a pickle at all. They can easily claim there is a lack of evidence and zero repeatable proof and move on. They don’t have to necessarily take a side, just state not enough evidence for acknowledgment of existence and move on. That leaves the door open for future changes on the subject. As far as businesses and such, as stated before, other industries continue to exist that are based in the paranormal/crypto realm. I don’t see this changing that. To use a phrase loosely, a fool and his money are soon parted. One way or another.