look up verbal contract, which btw are binding His friend could take him to court and would win.
Pretty hard to prove a handshake in 1992.
I know all about verbal contracts. The problem with verbal contracts is there is only oral evidence of the agreement. If the parties disagree about the terms, it's difficult to enforce an oral contract. In this case, his friend got half the winnings. Why would he sue? It's the IRS that would possibly question the arrangement and argue that there was no contract if it determined it was a tax dodge. Happens all the time.