Fantasy races are largely regarded in the WITCHLAND universe as legendary. At the very least races like the elves and gnomes have been pushed out of most of the known landscape and into the most remote and unsettled areas of the world.
Very briefly, dwarves as a fantasy race do not exist in the WITCHLAND universe. Halflings who largely come out of the works of Tolkien do not exist in the WITCHLAND setting either.
In addition to those intelligent fantasy races which do exist and which are explained a brief detail here there are several human factions which are important within the campaign setting but are not available as character races for story reasons.