But why, anyway, would he have chosen that horse in the Betfair Bowl Chase? “I’ve always liked the name,” he said.

Betfair’s shareholders will no doubt be relieved that Yu takes a more rational approach to the day job. Elevated to the top job three months ago after a stint as

Betfair’s chief technology officer, Yu faces a big task: justifying the premium valuation placed on the business by the sale of a 23% stake to the Japanese conglomerate Soft Bank.

At just over £300m, the investment values Betfair at about £1.5 billion — 30 times 2006’s projected earnings and 67 times last year’s operating profit. Multiples like that remind City analysts of the dotcom boom of 2000. But in Betfair’s case, its supporters argue, the rating is justified.

This week a number of Betfair investors, including its two founders Edward Wray and Andrew Black, will get large cheques in return for a chunk of their shareholdings. Further investments by other parties might follow, according to Betfair’s chairman, Tim Bunting.

Since Betfair was launched by the pair six years ago, introducing betting exchanges to the world, revenues have soared from less than £500,000 to £107m, and an operating loss of £2m in the company’s first year has been transformed into an operating profit of £22m.

Yu said: “We have a detailed expansion strategy, focusing on extending the product range, acquiring new licences and growing the customer base.”

The Betfair concept is simple. Instead of betting against a bookmaker, punters gamble against each other, and Betfair takes a small cut of their winnings. In Thursday’s Betfair Bowl Chase the company facilitated bets of almost £2m. By comparison, it expects to see bets of at least £300m during this summer’s football World Cup.

The sceptics accept that the Betfair model has revolutionised gambling, but many doubt that its premium rating is justified. “Betfair’s growth has been phenomenal, but it no longer has the market to itself,” said one analyst. “Things could get a lot tougher.”

There have already been upsets. Last October Stephen Hill, the chief executive who had overseen the appointment of advisers to steer Betfair towards a stock-market listing, resigned after colleagues decided to delay the flotation.

Hill’s departure, which resulted in Sir Robert Horton, the former Railtrack boss, being installed as executive chairman, was not the end of the upheaval, though.

Less than three months later, Horton himself was unseated by Betfair’s board, along with two non-executive directors, Nick Irens and Justin Dowley.

So, were the resignations a sign of deep-rooted discontent about the company’s progress?

It is a subject neither Bunting nor Yu is prepared to address publicly. “Clearly, there was a debate about the best route for taking the company to the next level,” said Bunting.

There should, however, be further additions to the Betfair board in the near future. Soft Bank has acquired, along with its shareholding, an option to place a candidate of its own on the board, and Bunting said he was on the lookout for other directors ahead of an eventual stock-market flotation.

But these changes have not dimmed the company’s mood of self-congratulation. “How many companies has Britain produced that have really transformed an industry?” said Bunting.

Investors who are planning to take a stake in Betfair when it does eventually float will be hoping Bunting’s enthusiasm is not misplaced.

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