Keith Howard, the number one Card Professor in the United States, challenged Maximillion J. Pegasus, the creator of Duel Monsters to a Duel. At first Pegasus was not interested, but later accepted under the conditions that the prize be one million U.S. dollars, the Duel take place in a large stadium capable of holding fifty thousand people, be broadcast nationwide and the earnings be split with the sponsors and TV stations. Keith agreed and the Duel took place in the New York Duel Stadium.
Pegasus used the time before the Duel to gather children unfamiliar with the rules and teach them how to play. When the Duel started, Pegasus did not touch his cards. He stared at Keith for a moment, and performed a Mind Scan, reading Keith's plans for the Duel. He wrote down Keith's cards, strategies and how to counter them on a piece of paper, before calling over one of the children he had been speaking to earlier, Tom. Pegasus gave Tom the paper and left the table, asking Tom to take over for him. Keith was unhappy with Pegasus' antics, but thought this would at least guarantee him to win the prize money.
After a few turns, Keith Summoned a monster, but Tom countered by playing "Flying Elephant" in Attack Mode, nullifying the fissure attack Keith was attempting and winning the Duel. Tom was surprised by how the paper Pegasus had given him detailed all the moves Keith made and described how to beat him. Keith snatched the paper and was surprised to see that it was true.
Seto Kaiba, who had been watching the Duel, came to the conclusion that Pegasus had the ability to read the minds of people nearby. He designed some aspects of his Duel Disks with this in mind, hoping to combat Pegasus' power.
- Yu-Gi-Oh! Duelist Duel 28: "The Terror of Pegasus!"