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Kaiba lost, and Pegasus sealed his soul inside a card. He is pretty cruel.
Anyway, the grand championship follows, on the next day. In order to compete the final 4 players all need the cards that came with the initial invitation. Jonouchi and Bandit Keith both do not have them, cause both are unofficial participants. Thankfully Yugi gives Jonouchi the card for the money prize. All goes well and they are invited for dinner, where Yugi and Anzu witness two portraits, one of them is of Shadi ... the very first serious opponent Yugi had to face back in the initial Yu-Gi-Oh manga. Why is he there?!