dnsmasq has dhcp server disabled by default.
To enable it you have to uncomment dhcp-related lines in /etc/dnsmasq.conf
to forward all requests to 208.67.222.222 it’s sufficient to add (without touching dnsmasq config) in /etc/resolv.conf:
nameserver 127.0.0.1
# In order to configure dnsmasq to act as cache for the host on which it
# is running, put [as the first line] "nameserver 127.0.0.1" in /etc/resolv.conf to force
# local processes to send queries to dnsmasq. [...]
# dnsmasq is smart enough to ignore this line and forward all queries appropriately,
# while all other applications will send all their queries to dnsmasq.
nameserver 208.67.222.222
That’s it 🙂