Can my wife and her friend sue a crooked photographer if they had no contract?

You say that there was no contract, but from the facts you provided it seems as if there was.  Although some types of contracts need to be in writing to be enforceable (and even then there are some fact patterns which may give rise to exceptions), most do not.  The main types of contracts which have to be in writing in most jurisdictions are those for the sale of real estate, those for the sale of goods over $500, and those which cannot be completely performed within one year.  It does not appear that the agreement you allege, which seems to be an agreement for your wife and her friend to perform services for the photographer in exchange for future royalties, fits into any of these categories and therefore, although Virginia law may require other types of contracts to be in writing of which I am not aware, it is probably enforceable even though oral.  Your wife and her friend can sue the photographer for breach of contract.  Of course, it would be easier for your wife and her friend to prove their case if they had something in writing.  Also, although you say that the photographer agreed to make your wife and her friend "his team", you don't say that he agreed to keep them as "his team" for any specific period of time; he could have fired them the next day.  Remember, an agreement to keep someone employed for more than a year would most likely have to be in writing to be enforceable.  Also, since there is no sales history, your wife and her friend will have a very difficult time proving the amount of damages they sustained from the breach, and may not recover anything for their lost profits claim.