That's the modern separation between church and state. The question is whether religion flourishes even in competition with the entertainment industry, with medical science, and so on. Depending on religion's purpose, religion may conflict with branches of secular society. Philosophy faces the same problem since self-help therapy and the happiness industry take over much of philosophy's mojo.

You can separate church and state, but secular society can sitll produce its versions of religion (secular ideology, the entertainment industry, sports), which will compete with the premodern kinds.