Unfortunately the support for cursor change on .dropeffect seems to be lacking.
You could try to attach an element to the mouse X and Y coords and manipulate that as it moves, but it can get messy. I think that lawrencealan's jQuery UI solution, which does just that, is probably the only reliable way to do this... and is actually quite simple. Still I would like to suggest an alternative which may suit your needs just as well, and does not require jQuery UI:
Alternative:
Instead of binding code to mousemove and dealing with unreliable cursor manipulations, I would suggest to simply have the targets change their appearance when you drag over them.
For example: jsfiddle
Add something like this to your dragover function:
$(this).addClass('draggedover');
Make sure to remove it on dragleave:
$('.drop').bind('dragleave', function (e) {
$(this).removeClass('draggedover');
});
And then add some CSS to go along with it:
.draggedover::before {
content: '';
background-image: url('https://i.stack.imgur.com/czlkT.jpg');
width: 40px;
height: 40px;
position: absolute;
right: 0;
top: 0;
overflow: hidden;
}
#dropMove.draggedover::before {
background-position: -110px -70px;
}
#dropLive.draggedover::before {
background-position: -5px -10px;
}