A three-judge panel of the Minnesota Court of Appeals on Tuesday rejected the Republican's bid to toss out his disorderly conduct conviction.
Craig still has the option of appealing to the Minnesota Supreme Court, and he said Tuesday he was considering future options but it may be difficult.
"This is another reason why lawyers say you rarely get a second chance to make a first impression when it comes to plea deals. It's very hard to get out of them. And the higher Craig goes up the appellate ladder, the harder it will get for him to get a do-over," writes CBS News legal analyst Andrew Cohen.
"There are strong precedents in Minnesota and everywhere else against allowing people who make plea deals to later change their mind. Otherwise, every person who pleaded guilty would later try to get out of it after a few days or weeks or months in jail. Craig is fighting uphill and has been from the beginning," Cohen continues.
Craig was arrested June 11, 2007, by an undercover police officer who was conducting a sting operation against men cruising for gay sex at the Minneapolis-St. Paul International Airport.