Why doesn't ERP have a dungeon master like normal RP does?

I'm pretty sure FATAL requires a dm. And precalculus algebra.
That game is now older than some KF posters.

But to answer your question, erp is usually done in situations between two players, Discord gooning nonwithstanding (and at that point, any pretenses of “playing a character” are out the window anyway because horny retards gotta be horny retards)
 
It's even weirder when you consider that in person sexual roleplay (ELARP? LAERP?) often has a dungeon master, of sorts.

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