I'd say there is magic, but it's limited to mages, sorcerers, warlocks and the like. The place they are sent would be like the place in Pandora Hearts kinda, and if you don't get the reference it's like a place of unreasonable difficulties and cruel facts. This place would make a little more sense than the one in PH, no floating coffee tables and the like, but it would be populated with beings able to use magic and manipulate reality. The world the prince is from however would be without magic save for aforementioned people and of course magical beasts.