Jay: What you did, although not technically against the rules, was a pretty stupid and malicious thing to do. In a more formal setting, that could get you into serious legal trouble and I strongly advise that you never do it again.
Kowen: This never really constituted a proper deal to begin with and probably wouldn't have been legally enforceable (though I am not a lawyer, so I could be wrong there). I don't believe for a moment that Jay ever actually intended to go to a court with it. All the same, I do agree with you that his actions were immoral and stupid.
I don't pretend to come close to understanding the underlying law here, but I strongly advise that you both just drop this and move on.
General advice: Don't make bets with actual money on an internet forum. Especially not this internet forum.
(Former) Lead Moderator and (Eternal) VGC Detective 
