If they were smart, they would drop it. The finding is a good and solid opinion from the original court. It's withstood the test thus far, but as of now it applies only to California. If it goes to the Supreme Court, it will mostly likely have wider application, but at least have influence outside CA.

Admittedly, this is a decidedly activist Supreme Court where Scalia and his band of merry men have no problem creating opinions from whole cloth, so they could win there. However, there's much at stake if they lose.

Drop this one, and the ruling has little effect in the other 49 states, so another case would have to be filed, and another five to eight years could go by before it once again makes it to the Supreme Court. And they gotta know that, at this point, the best they can do is try to forego the inevitable for as long as possible.