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I've seen the term applied to romances that utilize a fantasy setting without the mix of vampires/shifters/Fae/etc./etc. that seems to be common in "paranormal" books. Though like most genres, it seems to be a matter of what the publisher uses and little to do with the content of the book.
OTOH, one "reviewer" called Ursula K. LeGuin's EarthSea books romantasy since they involve magic which was fair enough. OTOH, you have to stretch to see them as romances.
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