The Gay Clown first appeared in "Cliffhanger" when Yami Yugi dueled Kaiba's "Ghost." Later it revealed itself to Yami during the duel after Kaiba uses a virus to help him win. Yami then stated that he looked like some sort of gay clown. The clown explained that he was the evil side of Kaiba that Yami mind crushed to the Shadow Realm, but he was brought back by Pegasus. Yami said that was even more hard to believe than his original claim that he was a ghost. He than killed it by using an extremely powerful mind crush. Yami later feels regret for killing the clown stating that he killed a gay clown just to get to Pegasus.
He also calls a clown leading him into Arkana's tent a gay clown in "Sore".
The gay clown reappeared at the 3rd anniversary party, only to be killed by Yami just like in the series. Only this time it's offscreen. When questioned about it, Yami says, "It's a gay clown. What do you expect?"
According to LittleKuriboh, the clown is both gay and British.