Osborn was booked for the challenge which provoked Ryan to hit out, and Laws - who felt Osborn, who went on to score the two winning goals for Walsall deserved a straight red - has decided against an appeal.
He told the Scunthorpe Telegraph: "From what I have seen, the FA will not overturn the referee's decision.
"The video does show an arm into the face of the Walsall player, but it was more in the way of trying to fend him off rather than of a violent nature."
Ryan will now have to serve a three-match suspension, starting with Tuesday night's trip to face MK Dons.
As a result Richard Hinds is expected to move back into midfield, with Andy Butler returning from injury to partner Andy Crosby at the back.