Game and Watch has the upper hand in this match up by far.
Game and Watch's priority dominates Link's. It's rather easy to punish ANYTHING link throws at us, while it's near impossible for Link to punish us. Bair pretty much eats up anything Link has. Once he's off the stage, it's near impossible to recover. Game and Watch has no problem gimping you whatsoever. If you're against a Game and Watch that knows what he's doing, there's no chance of survival if you're out horizontally, and (most of the time) vertically.
What does Link have? Projectiles. Can't be absorbed through the bucket. However, I'm pretty sure that Bair cancels out arrows, the Boomerang is still pretty useless (especially if the gust effects kicks in,) and Bombs are... well, bombs. Game and Watch has no trouble avoiding them. However, they are always great for messing up his momentum and keeping him at range. Guess spamming them isn't too bad of a strategy here.
Summary: Game and Watch beats Link in almost every category. Link is good at messing up Game and Watch's momentum with projectiles, though, which can seriously help in a match. However, this doesn't make up for the number of disadvantages he has. In my opinion, 70:30 Game and Watch.