To win this matchup, I've found you have to really take advantage of falcons speed over game and watch, and force him into tech chase situations. Game and watch beats you in neutral IF you are approaching and he knows it. Bacon shuts you down hard, but he can't spam it. Fair beats you hard, but it has decent lag. His other options shut you out really hard, but they don't cover high very well.
Game and watch has a terrible tech roll, so forcing techs is the best way to rack up damage against his up-b. Be ready to grab his standing tech but react if he does a rolling tech (keep in mind the techs loses invincibility and inaction sooner than it looks). If he does a rolling tech, you should be able to punish it on reaction.
However, the biggest and most important part of the matchups is.... DON'T GO OFF STAGE EVER. That's a stock, every time unless he messes up. Game and watch DASH ATTACK hits understage, so he doesn't even have to be set up. Not only that, but he is great at covering high recovery too.
I'd recommend taking him to a biggish stage, but not one with big blastzones. You'll want some room to work with, but you want to kill early too. I'd recommend stages like battlefield, ps2, FD, smashville, and lylatt (sorta). Small stages aren't bad, but you want to avoid massive blastzones at all costs (as long as the cost isn't FoD).
For comboing him, you have to keep in mind that he will be mashing up b. That means if your combos aren't frame perfect, you'll get hit. However, you can use this to your advantage. Up-b puts him above you, and he is floaty. If you space your up-airs perfectly, it'll beat out his down air. Also, baiting out downair leads to an easy knee and you can also hit him before key comes out. It's a three way mixup where he has to guess a 1/3 if you don't mess up.