UPDATE 3-Wynn Resorts files for Hong Kong IPO of Macau unit

* Wynn aims to raise up to $1 billion with spinoff

* UBS, Morgan Stanley, JPMorgan to handle listing

* IPO comes on heels of similar move by Las Vegas Sands

* Casino operators aim to support weaker U.S. operations

* U.S. casino shares mixed (Adds U.S. stock trading)

By Clare Jim and Michael Flaherty

HONG KONG, July 21 (Reuters) - Las Vegas casino company Wynn Resorts (WYNN.O) has submitted an application to list its Macau unit on the Hong Kong stock exchange, sources said on Tuesday, hoping to raise between $500 million and $1 billion.

Enthusiasm about the plan to list the shares through an IPO has awakened casino stock bulls in the past few sessions and shares were mostly moving higher in U.S. trading, led by Wynn, which was up as much as 5 percent before paring gains.

The move comes as Wynn rival Las Vegas Sands (LVS.N) also seeks to tap the Hong Kong IPO market, which has experienced a recent revival in activity after being moribund since late last year. Both gaming groups, saddled with debt after expansions coincided with the financial crisis, are hoping to boost valuations at home through a spinoff abroad.

Reuters reported last month that Wynn was reviving its Macau IPO plans, a process that began last year but was shelved when the markets plunged late in the fall. [ID:nHKG21365]

UBS AG (UBSN.VX), Morgan Stanley (MS.N) and JPMorgan (JPM.N) have been designated to handle Wynn's Hong Kong listing. Las Vegas Sands hired Goldman Sachs (GS.N) to run the offering of its own Macau unit, Reuters reported in May, a deal expected to raise more than $3 billion. [ID:nHKG32201] [ID:nSIN441766]

In addition to the Asian equity market rally, fueling the Macau deals is the goal of U.S. casino operators to monetize Macau assets to support struggling operations in Las Vegas.

Regional stock markets have staged a strong turnaround this year on investor optimism for a recovery in the global economy.

By tapping the Hong Kong IPO market, the companies hope to attain valuations for their Macau assets that will boost the valuations of their U.S. operations, bankers and analysts have said.

"They do need some money to pay down their debt in Las Vegas and they need the proceeds for further expansion in Macau," said Aaron Fischer, CLSA's head of Asian gaming research. "The valuation multiples will be higher in Hong Kong than Las Vegas. There's certainly an appetite for their business in Macau. Investors will want to get involved."

Macau is the world's largest gaming market and analysts say it is recovering from the crisis faster than its U.S. counterpart.

The banks involved in the Wynn IPO declined to comment.

Wynn shares were up 1.5 percent at midmorning at $40.43. On Monday, the shares rose about 10 percent and have traded in a 52-week range between $119.74 and a low of $14.50 hit in early March.

Among its key competitors, Las Vegas Sands was up 1.7 percent at $10.03 and MGM Mirage (MGM.N) was down 1 percent at $6.78. (Additional reporting by Sui-Lee Wee; Editing by Patrick Fitzgibbons in New York and Brian Moss)