Kill the two goblins
From Create Your Own Story
You breath fire into the little arena, burning both gladiator goblins alive.
The other goblins promise not to have any more gladiator matches.
What now?
You need more power.
The princess you have prisoner could give you leverage over her Kingdom.
If you aren't so confident about this, you took make the foreign merchants that travel to the kingdom pay you a toll.
Alternatively, your goblins can take a nearby village, gaining you more followers.