I suspect they're going to pin the blame on Jula (i.e. she bribed the judge directly rather than having the witches getting directly involved in arson in such a public forum). Probably also why Yuuri isn't going to report it either - bet he himself knows there won't be any evidence linking them to the incident.
It's quite obvious now Yuuri can't expect any direct help from the royal house, concerning the witches. However, I reckon he can expect the royals to be "blind", no matter how Yuuri is planning to deal with the witches. So, he can crack a hundred witch skulls and the government will do nothing to stop it, nor find him guilty of anything later.
Wait, wasn't there supposed to be a counter-raid on standby? I had the impression something like that was gonna happen (that said I don't really remember last ch, it's been a month)
That's the problem with being in their kind of position; being the biggest doesn't make you indestructible or untouchable. Even in the modern world, corporations and politicians make that mistake a lot.
She lost so bad at fantasy checkers that she felt the fear of death! That was a nice visual touch to represent the chess match as actual violent combat. And foreshadowing of what's to come!
They were so sure they were the top dog and thought that they could have controlled him like they controlled small merchants. Though in this case, it is probably all Julia's, she didn't think it through and treat the Hou successor like other common merchant.