The Reds have decided not to appeal against his eight match ban.
"He has an eight-game punishment and he has to serve it so I suppose now is as good a time as any to serve it," said Dalglish.
"I think it was better to get the situation over and done with and leave it there.
"Luis is a fantastic player and fantastic person so we he will be missed but we just have to get on with it.
"It is not better to miss him at any time - we'd much rather have him but we don't."