I've not checked the definition of magical realism, so I may be barking up the wrong tree, but for me it lies in using the real world as opposed to a fantasy construct but in that real world magic is accepted as completely normal by everyone -- ie it's a fact of life as much as chocolate or grass. If the knowledge of magic is restricted, then to my mind it's fantasy even if set in the real world.
I've only read a couple of Gaiman's books, but to the best of my recall magic isn't universally known and accepted, it's only known to a few, so in my definition he's writing fantasy. The same for Ben Aaronovitch and Jim Butcher -- real life and real places, but most citizens are ignorant of any magic in the world.
Kraken, by China Mieville, might be magic realism on this definition -- lots of very strange things but everyone seems to think it's all normal.
Tolkien is fantasy, not magic realism, because there's no reality there -- it's an invented world.
That help?