Short version: Our world but with a Masquerade!

Long version:

So, you know how there are Christmas movies where Santa Claus canonically exists, but for most people the world looks exactly the same as if he didn't?

Like, households don't find presents that aren't from family or friends, poor children get fewer and worse presents than rich children, children make pretty reasonable gift requests which go perpetually ignored, letters to Santa never get replies, and so on?

Except for the one small group of main characters that Santa arbitrarily decides he needs to prove himself to?

It's like that, but with magic in general, and also gods.

(Except you know how in the Christmas movies the moral is that those people should have believed in Santa all along, even though he only just started revealing himself? And also everyone else in the world should believe in Santa too, even though he still hasn't revealed himself to them? This doesn't have that part.)