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Police and soldiers swooped on a well known bar on Koh Pangan yesterday and found magic mushroom punch on sale as well as nitrous oxide in balloons.
There was also three large canisters of the gas known as laughing gas.
There were more than 100 patrons enjoying the countdown party at the Hat Rin beach venue when the police arrived using Article 44 powers, reported Thai Rath.
The incriminating substances and 3,000 balloons were taken into evidence along with 1,510,100 baht in cash from the register table.
Taken away were owner Duangrudee “Noi” Sae-lim, 38 and two other men at the bar Charnchai Buakham, 44, and Khamnuan Somsuk, 59.
Noi admitted selling magic mushrooms mixed with fruit juice for 300 baht a glass as well as balloons of laughing gas for 150-200 baht a time.
Charges of possessing and selling Class 5 drugs (magic mushrooms) and distributing nitrous oxide were laid.
Het Khii Kwai (literally buffalo dung mushrooms) give the user a trip lasting many hours.