The catch is that it wears off very quickly, so you have to be waiting. Rabbits are very easily litter trained. First, get your rabbit used to going to the bathroom in the cage, then gradually give access to the house in small increments. Place a cat litter box or pyrex baking dish with litter in the corner of the cage where the bunny prefers to urinate. Place some droppings in the box and reward the bunny every time the litter is used.
Punishment has no place in housetraining.
You may also wish to place a food bowl just next to the litter box since they usually pass stool while they are eating. Place your rabbit in the litter box every 15 minutes until he learns to use it. Next, gently herd your rabbit back to his cage. If he jumps into the litter box, leave the cage door open. If he doesn't, close the door for a minute or two, and then let him out again whether he has used the box or not.